18 May 2015
ECB QE’ is already having strong effects’ – ECB’s Mersch
FXStreet (Mumbai) - Speaking at the Swedbank Economic Outlook Seminar in the Swedish capital on Monday, the European Central Bank (ECB) Executive Board member Yves Mersch said that the central bank has to maintain its "intervention" policies until inflation in the euro zone comes close to its 2% target.
Key Quotes:
"We need to maintain the pace and volume of our interventions ... so that inflation rises back towards 2% as quickly as possible and that monetary policy can begin once more to normalize,"
"In terms of reaching our objective, our package of measures is already having strong effects – perhaps stronger even than many observers anticipated,"
"The latest data on bank lending show continued
improvements in the cost of credit, the availability for credit and the demand for credit. Confidence has also notably improved, with the latest European Commission economic sentiment indicator confirming the pick-up in both consumer and business confidence. And the more confident firms and households feel in the recovery, the more credit should continue to improve."
"The diminishing price pressures over recent years have required the ECB to act forcefully and repeatedly to fulfil its mandate,"
"This culminated in January 2015 with our decision to expand our asset purchase program to stave off deflationary risks and stop the fall of inflation expectations. In doing so we have sent a strong signal that we will safeguard price stability no matter what. This is our mandate as enshrined in the Treaty. And although our instruments have changed our conviction and mission have not."
Key Quotes:
"We need to maintain the pace and volume of our interventions ... so that inflation rises back towards 2% as quickly as possible and that monetary policy can begin once more to normalize,"
"In terms of reaching our objective, our package of measures is already having strong effects – perhaps stronger even than many observers anticipated,"
"The latest data on bank lending show continued
improvements in the cost of credit, the availability for credit and the demand for credit. Confidence has also notably improved, with the latest European Commission economic sentiment indicator confirming the pick-up in both consumer and business confidence. And the more confident firms and households feel in the recovery, the more credit should continue to improve."
"The diminishing price pressures over recent years have required the ECB to act forcefully and repeatedly to fulfil its mandate,"
"This culminated in January 2015 with our decision to expand our asset purchase program to stave off deflationary risks and stop the fall of inflation expectations. In doing so we have sent a strong signal that we will safeguard price stability no matter what. This is our mandate as enshrined in the Treaty. And although our instruments have changed our conviction and mission have not."