Back
21 Mar 2016
ECB’s Villeroy - Negative rates effective but have limits
ECB governing council member Francois Villeroy de Galhau assured markets today the bank is ready to act with right instruments to meet the inflation target, but maintained there is a limit to how low negative rates can go.
Key quotes
Repeats no signs of bubbles in financial markets
TLTROs meant to spur lending, not offset neg rates
Negative rates effective but have limits
Broad range of instruments to attain 2% inflation target
ECB measures to add 1 pt to inflation in 2015-2017
Despite deflationary pressures, does not see deflationary dynamics of falling prices, wages and asset prices
Euro zone is facing "deflationary pressures" from Oil prices and emerging market slowdown
Key quotes
Repeats no signs of bubbles in financial markets
TLTROs meant to spur lending, not offset neg rates
Negative rates effective but have limits
Broad range of instruments to attain 2% inflation target
ECB measures to add 1 pt to inflation in 2015-2017
Despite deflationary pressures, does not see deflationary dynamics of falling prices, wages and asset prices
Euro zone is facing "deflationary pressures" from Oil prices and emerging market slowdown