ECB chief economist Peter Praet comments in Berlin
- Equilibrium real interest rate has declined to very low levels
- Precise level is very uncertain
- Any decision concerning termination or extension of net purchases will hinge on the ultimate judgement of the governing council
- Post-QE forward guidance on policy rates will then have to be further specified
- There is strong evidence that labour market tightness is translating into a stronger pick-up in wage growth
- Underlying strength of the Eurozone economy persists
If anything, he's hinting that the ECB is confident that inflation will move towards its target (and the ECB remains confident on both inflation and the economy) and that there is a chance that the June meeting next week could see an announcement to end QE. Reports overnight said that the meeting will be a "live" one, in case you missed it.
Euro is a little higher on the headlines, with EUR/USD touching a session high of 1.1752.
