ECB Executive Board member Jan Smets provided his team’s perspective on the change in guidance. Smets believes that there is still some growth left in the Eurozone economy, but also that there is still some way to go to hit the inflation target because the output gap remains sizable. Executive Board member Benoit Coeure then provided further color: according to Coeure, inflation is not yet at target and interest rates will remain at secularly low levels for some time.
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