ECB’s Constancio - Eurozone would be in deflation without ECB policies

ECB’s Constancio was on the wires stating the Eurozone would have suffered from deflation if it were not for ECB’s ultra easy monetary policy.

Key quotes

All policies have limits, especially negative rates

Urgently need higher growth to normalize inflation

Wrong and dangerous to start talking down monetary policy

Naturally, all policies have limits. In the case of the instruments we are now using, this is particularly true of negative interest rates on our deposit facility

To normalize inflation in the Euro area we urgently need higher growth

Two thirds of EMU growth due to monetary policy

Without our policies, inflation would have been a third of a percent negative in 2015 and would have stayed significantly negative throughout 2016

Net export drag undid growth boost from ECB policy