Important that inflation expectations are anchored – ECB’s Praet

FXStreet (Mumbai) - The European Central Bank (ECB) board member Peter Praet while delivering a keynote speech in Frankfurt on Thursday reiterates that downside risks to the Eurozone persists and sees the 19-nation bloc’s GDP to return to Q1 2008 levels in early 2016.

Key Quotes:

Governing council has rich discussion about balance sheet adjustment

Governing council is strong behind decisions taken

See confirmed downside risks in emerging markets

Incoming data shows cyclical recovery confirmed

Incoming data shows we're leaving very long recession

Downside risks prevailing, tail risks have receded to an extent

Important that inflation expectations are anchored for Mon policy to be transmitted

Transmission to inflation slower than expected

EMU GDP will return to Q1 2008 level in Q1 2016

Investment still depressed

Commodity prices ex oil have continued to fall, due to demand

Environment characterised by uncertainty