QE to add roughly half point to 2016 growth – ECB’s Villeroy de Galhau

FXStreet (Mumbai) – European Central Bank’s (ECB) Governing Council member and the governor of the Bank of Franc, Francois Villeroy de Galhau, in his welcome address at a farewell symposium for Christian Noyer noted the following:

Worrying if commodities’ prices affect inflation expectations

Disanchoring ‘suggested’ by oil/5y swap rate link

Important to be on consistent path to price stability

Hasty changes to central banks’ inflation targets may affect their credibility

The zero lower bound of monetary policy has proved not to be the effective lower bound, but there are limits on how low one can go

QE to add roughly half point to 2016 growth

Keeping rates low too long counter productive

Separately, in an interview with Bloomberg Television in Paris earlier today, ECB’s Villeroy De Galhau stated, “Inflation remains too low, it’s true, but facing this situation we have been, in the Eurosystem, active and effective.”

He added, “Let us first look at economic data, this is the most important point, and if needed — I stress the if — we have the tools and capacity of action.”

European Central Bank’s (ECB) Governing Council member and the governor of the Bank of Franc, Francois Villeroy de Galhau, in his welcome address at a farewell symposium for Christian Noyer noted the following:

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