Buba’s Weber: Price falls likely in Germany some months this year, not over medium-term

Bundesbank president Weber says that there is no danger of deflation over the medium-term in the eurozone but that it is likely in some months this year in Germany. He optimistically sees the economy stabilizing and then picking up after a contraction in the first quarter. Further rate moves depend on data and economic developments, he says.

Eurozone officials keep spinning like tops, tying to forestall deflation expectations.
EUR/USD has stabilized, as have equities. Stocks are back in black after a dip below breakeven on the day and EUR/USD has rebounded to 1.3125 after a dip toward 1.3100.