• Bonnici ECB: Monetary policy can be described as a very soft

Market news

17 September 2012

Bonnici ECB: Monetary policy can be described as a very soft

  • A third round of quantitative easing, the Fed - a "positive step"

  • Outside the eurozone Greece would face greater challenges

  • Purchase of bonds - an important tool of monetary policy

  • The new ECB bond purchase program has supported

  • I do not see a threat of deflation

  • Inflation expectations remain subdued

  • The expected fall in inflation below 2%

  • The most recent forecasts, the ECB on economic growth could be too pessimistic

  • In the future, we can reflect on the negative interest rate on deposits

  • Negative deposit rate is not on the main lines of the agenda at the moment

  • It is difficult to predict when the economic situation will unfold

  • We have to be on the fence in regard to the further lowering of the rates

  • Impact of further lowering of interest rates is "very limited"

  • Key interest rate is still adequate to the situation

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