ECB’s Praet – risks that inflation may become persistent

European Central Bank’s (ECB) Praet, while speaking in Rome, said the central bank’s measures are controversial and there is risk that low inflation may become persistent.

Key quotes

Inflation may decline even in situations where monetary policy has been successful in reducing slack

Persistently low inflation would deeply damage the economy

ECB will act forcefully to raise inflation

ECB is so determined to raise inflation

ECB showed it doesn't wait for others to move first

Acting decisively to defend ECB objective wards of more severe macroeconomic imbalances