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ECB Sees Slow Approach to Stimulus Change Keeping Markets Calm

  • Vice President Constancio says investors understand ECB method
  • Chief economist Praet says output gap won’t close until 2019
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ECB's Constancio Doesn’t Fear a Market Policy Surprise

Two of the European Central Bank’s top policy makers said they’ll move only very slowly toward unwinding their stimulus program, signaling a desire to avoid any market volatility.

Vice President Vitor Constancio and Executive Board member Peter Praet reiterated the view that the recent acceleration in euro-area inflation is largely due to transitory factors and is dependent on monetary-policy support, and that slack in the economy will last until 2019. The two made the remarks even while acknowledging that the recovery is picking up speed and proving robust.