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No 'plan B' for ECB despite still low inflation: Praet
The European Central Bank's money-printing plan has so far failed to drive up inflation but the bank does not have an alternative “plan B”, ECB Executive Board member Peter Praet said in a magazine interview published on Wednesday.
Praet said he remained confident that the stimulus would drive up inflation however, adding: “If you print enough money, you always get inflation. Always.”
The ECB eased its policy further last month to combat stubbornly low inflation, cutting its deposit rate deeper into negative territory and extending asset buys by six months until March. [L8N13S1HC]
“I accept that our policy has not yet been successful: inflation in Europe has for a long time been at a very low level of almost zero,” Praet, the ECB's chief economist, told Belgian weekly magazine Knack.
Praet said various factors, notably low oil prices and less buoyant emerging economies, meant it was taking longer to reach the goal of inflation of close to but below 2 percent …. http://www.reuters.com
Source: http://luismmx.blogspot.com/2016/01/no-plan-b-for-ecb-despite-still-low.html
