Our friends at Livesquawk reporting an article in the Belgian Knack newspaper by the ECB chief economist

  • there is no Plan B for reaching 2% inflation
  • the ECB stands ready to take all measures that are necessary to bring inflation to 2%

" If you print enough money, you will always get inflation. Always. But if oil and commodities prices tumble, it is more difficult to allow inflation to rise. If a whole series of such factors occur, you can't do anything other than somewhat postpone the date on which you seek to reach the higher rate of inflation"

  • The emergence of bubbles is a justified concern. But if the ECB were not pursuing its current policy, the financial concerns would be even more serious because the economy would be in poorer shape.

Nothing we don't already know

EURUSD unfazed at 1.0743

ECB's Praet repeats there is no Plan B