Below are some of the key highlights from the ECB Executive Board Member Peter Praet’s speech at the Congress of Actuaries in Berlin:
“¢ Equilibrium real interest rate has declined to very low levels; precise level is very uncertain.
“¢ Any decision concerning termination or extension of net purchases will hinge on the ultimate judgment of the governing council.
“¢ Post-QE forward guidance on policy rates will then have to be further specified.
“¢ There is strong evidence that labour market tightness is translating into a stronger pick-up in wage growth.
“¢ The underlying strength of the Euro-zone economy persists.
“¢ Signals showing a convergence of inflation towards our target have been improving.
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