European Central Bank Vice President Luis de Guindos spoke in an interview with Handelsblatt, with remarks on a wide range of topics:
- In formulating our new strategy we decided on a reform, which I don't think has received enough attention. The previous two pillars of monetary policy, the economic and the monetary analysis, are now being integrated. Monetary policy decisions are built on an assessment of the economic analysis and the monetary and financial analysis, the latter explicitly including financing stability considerations. That is a major step.
(which all means that financial stability will play a more prominent role in future than it has up to now)
- Moreover, our stimulating monetary policy is necessary now − and for the time being in order to maintain favourable financing conditions.
- We need a central fiscal capacity at European level
- While we are currently seeing inflation rates of close to 2 per cent in the euro area, we are expecting them to fall next year and remain in those levels after.
Bolding above is mine. Plenty more from LdG at the link here
