10 Apr 2014
ECB Monthly Report: Governing Council ready to act should the need arise
FXStreet (Łódź) - In the April ECB Monthly Report the Governing Council reiterated their determination to maintain a loose monetary policy for an extended period of time. They assured they would continue monitoring developments in the Eurozone and that they would take swift action if needed.
The Governing Council signaled that further monetary easing was a possibility and that the members were committed to using unconventional tools “in order to cope effectively with risks of a too prolonged period of low inflation.”
CPI is expected to stay above low in the next month, before starting to gradually rise during 2015 to reach the 2% target level towards the end of 2016. “At the same time, medium to long-term inflation expectations remain firmly anchored in line with price stability,” the Governing Council adds.
Finally, the report acknowledges the progress EU Member States have made on the path to correct fiscal imbalances and stresses the importance of further efforts to “reform product and labor markets with a view to improving competitiveness, raising potential growth, generating employment opportunities and making euro area economies more flexible.”
The Governing Council signaled that further monetary easing was a possibility and that the members were committed to using unconventional tools “in order to cope effectively with risks of a too prolonged period of low inflation.”
CPI is expected to stay above low in the next month, before starting to gradually rise during 2015 to reach the 2% target level towards the end of 2016. “At the same time, medium to long-term inflation expectations remain firmly anchored in line with price stability,” the Governing Council adds.
Finally, the report acknowledges the progress EU Member States have made on the path to correct fiscal imbalances and stresses the importance of further efforts to “reform product and labor markets with a view to improving competitiveness, raising potential growth, generating employment opportunities and making euro area economies more flexible.”