ECB had to act to forestall fall in inflation expectations, Praet says
Central bank “cannot wait for others to act first”, Praet says
The European Central Bank (ECB) had to act to expand its securities purchasing programme to forestall a possible downward shift in inflation expectations, the bank's de facto chief economist has said.
In the summer of 2014, long-term inflation expectations in the eurozone "started a gradual decline to levels unseen since the start of monetary union", Peter Praet told an audience in Rome today (April 4). "Without further decisive policy action, sized to a scale appropriate to arrest the process
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