27 May 2014
ECB's Nowotny worried about prolonged low inflation
FXStreet (Łódź) - ECB Governing Council member Ewald Nowotny, who is also the head of the Austrian central bank, said on Tuesday that he expected inflation in the Eurozone to remain at a low level for the rest of the year and for a part of the next one.
"But over the medium term it is likely to align itself with the ECB's objective of keeping inflation below but close to 2 percent," he assured in the the Austrian National Bank's annual report, adding that the pace of economic recovery in the Eurozone should accelerate in 2014 and 2015.
Nevertheless, speaking in Vienna following the release of the report, he pointed to prolonged low inflation as a risk, which could result in higher debt and declining consumption.
Nowotny stated that Germany and Austria were the most solid countries in the Eurozone and that Austrian banks were benefiting from a stable Swiss franc.
"But over the medium term it is likely to align itself with the ECB's objective of keeping inflation below but close to 2 percent," he assured in the the Austrian National Bank's annual report, adding that the pace of economic recovery in the Eurozone should accelerate in 2014 and 2015.
Nevertheless, speaking in Vienna following the release of the report, he pointed to prolonged low inflation as a risk, which could result in higher debt and declining consumption.
Nowotny stated that Germany and Austria were the most solid countries in the Eurozone and that Austrian banks were benefiting from a stable Swiss franc.