- Core inflation is still low
- Output gap to close gradually by 2017
- Stimulus significantly reduced risk of second round oil effects
- See saving rate remaining unchanged
He's saying that any further pass through from lower oil prices have been reduced through ECB measures. Considering he's making that call after what looks like a bottom in oil paints him in false glory. It's something that could bite him in the bum if oil takes another big leg lower. As we know from trading, timing is everything and one of the factors I mentioned previously was the whole timing of the QE start point, and whether they would tie it in to seeing the effects of the oil price falls.
