ECB’s Smets: Monetary policy needs to remain patient, persistent and prudent

The European Central Bank (ECB) Governing Council member and Belgian central bank Chief Jan Smets was on the wires last minutes, via Reuters, speaking at the at the European Association of Co-operative Banks (EACB) Regulatory Debate on ‘The impact of monetary policy on the macroeconomy and European banks’.

Main Headlines:

“ECB thinks slack could be larger than expected.

Monetary policy needs to remain patient, persistent and prudent.

Over the past decade, the ECB, like other central banks, has taken unprecedented measures to limit the impact of the financial crisis on the economy of the Euro area.

Since 2014, Euro area inflation has averaged 0.6% in annual terms. Currently, both headline and underlying inflation remain well below 2%.

Looking ahead, we expect a slow recovery of inflation towards our inflation aim.”