ECB’s Nowotny: ECB cannot stop asset purchases abruptly

ECB Governing Council member Ewald Nowotny crossed the wires last minutes, via Reuters, commenting on the bloc’s inflation outlook in an interview with Der Standard.

Key Points:

ECB cannot stop asset purchases abruptly

Decision how to proceed must be made in Oct

Sees arguments for slowing purchases

Won't reach inflation target this year

Expect even lower inflation next year but policy can be normalized before target reached

Sees risks of bubbles in Europe with investors seeking alternatives in times of low rates