FXStreet (Mumbai) – European Central Bank (ECB) Governing Council member and Slovenian Central bank Governor Bostjan Jazbec noted via Bloomberg that the ECB’s quantitative-easing program is starting to show results and patience is necessary as inflation returns to the euro zone.
Key Quotes:
“I think QE is working, that the results are there and that all other options are off the table as we clearly have evidence that we are on the right track,”
“Monetary policy works with lags and we just need to be patient and wait for the results.”
“We are on the right track to bring prices within the range that we see as fulfilment of the mandate,”
“Of course, if we don’t bring inflation within our mandate range, the clear message from the ECB was that we might continue” to buy bonds beyond September 2016, the current end-date for the QE program.
Jazbec sees “positive developments” on inflation and believes that recent data shows that QE is working within the ECB’s expectations.
“I don’t think that we need any tools and any additional instruments at this point,”
“I don’t see any reasons why we should discuss any other alternatives for something that is obviously working.”
(Market News Provided by FXstreet)