ECB’s Liikanen: Interest rates to stay as are or lower past horizon of QE

Governing Council member of the European Central Bank (ECB) as well as the Governor of the Bank of Finland, Erkki Liikanen, was on the wires last hour, commenting on the central bank’s monetary policy stance in light of lower inflation expectations.

Key Quotes:

Long-term inflation expectations low in the euro area

Difficult to assess economic importance of some risks

Key int rates to stay as are or lower extended time

Interest rates to stay as are or lower past horizon of QE

Must ensure very low inflation won't cause 2nd-rd effects

If warranted, ECB to act using all tools in mandate

Inflation figures are a reason for concern