Comments by ECB member Ewald Nowotny
- Downward revision to growth forecasts means that economic growth is slowing
- It does not mean that the economies "are going down"
- Trade war risks are less dramatic than at first sight
- In addition to trade war, there could be unintended currency war
- That would have a more serious effect
- The current situation isn't as dramatic, but it could escalate
- It is not possible to give a trade war impact forecast
- Fear of deflation is over
- May see inflation rise above 2% for a month or so due to rising oil prices
- Negative interest rates cannot be a permanent feature of monetary policy
- Economic growth in the Eurozone has reached plateau due to capacity limits
- Consumer prices are moving in the right direction
Nothing too new from Nowotny as he plays up the inflation rhetoric and plays down the slowdown in growth so far seen in the Eurozone this year. Surprisingly, he isn't as worried about the global trade situation - which has already started impacting European companies.
Not to forget the possibility of tariffs on automakers - it's still no done deal yet to suspend those tariffs - and that will cause more of a stir on European markets should that come to fruition.