ECB’s Nowotny: Too Early to Say We Have Reached a Turning Point

European Central Bank Governing Council member Ewald Nowotny said on Friday he was not concerned about inflation remaining well below the bank’s target until 2018, adding that the bank was allowing measures introduced earlier this year to take effect.

ECB inflation projections released on Thursday were revised upwards for 2016 to 0.2 percent from 0.1 percent, but inflation projections for 2017 and 2018 remained unchanged at 1.3 percent in 2017 and 1.6 percent in 2018.

“We will have still very low inflation this year but we think that in the next year already we will have quite a substantial pickup in inflation,” Nowotny told CNBC in an interview in Vienna. If the bank’s forecasts materialize, there will be no need for further stimulus, however, he said.


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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.