QE may be extended beyond September 2016 – ECB’s Praet

FXStreet (Mumbai) – The European Central Bank (ECB) member Praet, while speaking in the Netherlands, said the cyclical recovery in the Eurozone depends on the full implementation of its QE program and the program may be extended beyond September 2016.

Praet added that low interest rates is not a central bank choice but a result of the economic malaise in the global and Eurozone economy.

Other Key Quotes

Governing Council will closely monitor the medium-term risks to the inflation outlook. The ECB is being vigilant in preventing unwarranted tightening.

The ECB has emphasised its willingness to act if warranted by using all tools available in its mandate. QE contains sufficient flexibility to adjust its size, composition and duration.

Levels that rates return to in the future depends on the degree to which secular drivers, currently depressing rates, can be reversed.

The European Central Bank (ECB) member Praet, while speaking in the Netherlands, said the cyclical recovery in the Eurozone depends on the full implementation of its QE program and the program may be extended beyond September 2016.

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