ECB’s Praet: Transition towards normalisation will begin once inflation is sustainable

The European Central Bank (ECB) Chief Economist Peter Praet is on the wires now, via Reuters, making a scheduled speech on the topic ‘Maintaining price stability with unconventional monetary policy’.

Key Headlines:

Once we have established there is a sustained adjustment in the path of inflation, the transition to normalization will begin.

Once governing council judges the criterias have been met, net asset purchases will expire

Policy will be set data-dependent, and time consistent.

Domestic price pressures remain subdued.

Ample degree of monetary accommodation is still needed at present.

There is still some distance away from meeting those inflation criterias.