ECB's Praet: June measures need time to take full effect

FXStreet (Barcelona) - ECB Executive Board member Peter Praet, who spoke today at the at the Europlace Financial Forum in Paris, pointed out that the impact of the package of measures implemented by the central bank last month would become evident only after some time, when they will have worked their way through to the economy.

He commented on ECB's targeted longer-term refinancing operation, or the TLTRO, saying that it could stop the "vicious circle" of constrained lending in the Eurozone, by increasing excess liquidity and creating scarcity of investible assets.

Praet expressed confidence that ECB's measures would push inflation closer to the 2% target and limit bubble build-up in the housing sector. He added that some Eurozone countries still needed more structural adjustment.