Europe's recovery is not yet satisfactory says ECB's Villeroy

Speaking in Munich

  • Growth forecasts do confirm a recovery

  • The ECB's policy fits in with German values

I bet a few stein glasses were dropped at that last remark.

  • Fears over the resurgent of inflation are exaggerated

  • German inflation is set to remain below 2% on average in 2017

I'm sure the German's are loving a Frenchman telling them what's what.

  • ECB does not aim to leave rates low for a long time

  • Negative rates can be useful but have limits

  • Eurozone countries need reforms to boost growth

  • Eurozone needs a better collective economic strategy

Separately, Reuters report that money markets are showing a 50% chance of the ECB raising rates in Jan 2018.

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