Governing council are ready to hit the tool shed
- ECB is ready to act if 2% target is in danger of being pushed back
- ECB projections based on assumptions. If they change we have to adjust
- Projections are conditional to QE being fully implemented
ECB VP Vitor Constancio now up saying that there is a measurement problem with inflation
- Negative inflations rates can be very detrimental
- There are also deflation risks but a few months of negative inflation is not really deflation
- If deflation lasts for many months there are increased problems and why central banks are willing to fight that
