Ewald Nowotny is speaking to Bloomberg
- Low oil price means incomes have improved
- Core inflation rates have been rather stable
- ECB is clearly below its 2% inflation goal
- Monetary policy should not be overburdened
- Any QE expansion will need more thorough examination
- No need to act in the short term
- Emerging Europe is in good shape says
Less dovish talk on QE from Nowotny see the euro jump a few pips
- ECB must have a steady hand policy
- Prolongation of QE may have a signalling effect
- There is room to buy more of the same under QE
- ECB could expand into other assets
- Results of ABS are disappointing
- Would welcome additional supply of more ABS
Back to dovish
- His preference is to be more cautious on QE
Less dovish
- Shouldn't overestimate effect of Fed and PBOC on ECB