Further comments by ECB's Ewald Nowotny
- The new normal for monetary policy is characterised by longer lags in inflation
- Risk of waiting to normalise policy would create risk of it becoming pro-cyclical
- Trade wars have negative effects for all involved
- Negative effects of a trade war could be on the exchange rate side
- But it is difficult to predict what impact on the exchange rate that would be
- Next step for ECB is to shrink balance sheet, not buy more assets
His earlier comments can be found here.
Again, not much to glean upon from Nowotny's comments. His earlier comments were more along the lines of a Goldilocks tune. Let's move on.
