- If domestic demand remains weak, inflation could fall well below 2%.
- The ECB should move to neutral monetary policy stance, or even expansionary if necessary.
- Eurozone economic activity remains weak, no turning point in sight for beleaguered manufacturing sector.
- The tightening bias in our official description of the monetary stance is no longer necessary.
- The ECB should return to more traditional, forward looking approach to monetary policy.
- Directional guidance from the ECB would help consumption and investment.
- The ECB needs to give more explicit indications of its rate policy intentions.
ECB's Panetta