More comments are flowing in from the European Central Bank (ECB) Governing Council member Benoit Coeure delivered in his interview with Frankfurter Allgemeine Zeitung.
Missing transmission from wage costs to consumer prices is a bit puzzling.
Businesses are apparently accepting narrower profit margins.
But that cannot go on forever, at some point they will raise prices.
Choice of next ECB president should be based on competence, not nationality.
ECB does not expect a recession.
But it is true that economic slowdown in Germany is stronger than expected.
Markets pricing in a rate hike by the ECB only in late 2020 is reflective of a different assessment shared by the governing council.
The ECB’s economic projections ”will be revised in June”.