TOKYO (MNI) – European Central Bank Vice President Vitor Constancio
said Monday that eurozone inflation expectations appear to be well
anchored for the next decade even though the central bank has added
large amounts of liquidity to ensure financial system stability.
“We have all the indicators from the financial markets and from
our surveys of professional forecasters and consensus that inflation
expectations for the next 10 years are well anchored near 2%,”
Constancio said in a speech here.
Historically and globally it takes a long time for monetary base
changes to have an impact on inflation, Constancio said.
“In the world there is no buoyant credit expansion or monetary
expansion that can really justify concerns about future inflation,” he
said.
In other comments, Constancio said emerging economies are starting
to slow down but this has not yet materialized as a significant risk to
global growth.
tokyo@marketnews.com
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