- forecasts support expectations of low inflation
- accomodative stance to be kept as long as necessary
- key rates to be held at or below current levels for “extended period of time”
- note low inflation, weak economy, subdued credit
- determined to take decisive action if needed
- recovery to continue at slow pace
- real income supported by lower energy prices
- 2014 GDP growth forecast +1.2% vs +1.1% prev
- 2015 GDP growth forecast +1.5% as prev
- 2016 GDP growth forecast +1.8%
Euro higher on better 2014 GDP forecast and no mention of other easing measures. EURUSD 1.3790 from 1.3750
- 2014 inflation forecast 1% vs 1.1%
- 2015 inflation forecast 1.3% as prev
- 2016 inflation forecast 1.5%
- says inflation risks broadly balanced
- forecasts 2016 Q4 inflation up at 1.7%
- assumes declining oil prices and unchanged exchange rate
- weak lending reflects credit risk
- essential to reduce credi market fragmentation
- steps toward banking union will help boost confidence
- forecasts suggest fiscal progress
Summary over .. now onto Q&A
EURUSD 1.3803
