ECB’s Visco – There’s an increase of downside risks

European Central Bank (ECB) Governing Council member Ignazio Visco said today that downside risks have mounted and that inflation data, and in particular inflation expectations, are discouraging.

Visco added that the Bank would do what is necessary to "respect" its price stability mandate.

Key quotes

Inflation, especially inflation expectations, not encouraging

Goal is not to let expectations de-anchor dramatically

ECB determined to do what's necessary to respect mandate

Negative interest rates are very unconventional policy