ECB’s Praet says Oct decision was taken against a backdrop of solid economic expansion

ECB chief economist in a scheduled address 6 Nov

  • Oct decision was taken against backdrop of solid & broad-based economic Expansion which the Euro area continues to experience
  • mon pol measures have been effective
  • convergence of inflation towards our aim remains conditional on a substantial mon pol accommodation
  • a «sustained adjustment in the path of inflation» is the principal condition that has guided, and will be guiding, the calibration of our asset purchase programme (APP).

Praet makes the opening remarks at the ECB workshop on «Money markets, monetary policy implementation and central bank balance sheets»

Full speech here where he concludes:

The brighter economic prospects have increased our confidence in the gradual convergence of inflation towards our aim. At the same time, a substantial amount of monetary accommodation continues to be necessary to secure the gradual convergence of inflation towards our inflation aim.

The continued monetary support is provided by the additional net asset purchases, by the sizeable stock of acquired assets and the forthcoming reinvestments, and by our forward guidance on interest rates.

To this end, an effective transmission of our monetary support through the money market remains essential.

Euro still on the back foot. EURUSD 1.1607 and EURGBP down to 0.8870 giving GBPUSD a nudge up to 1.3084

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