According to European Central Bank Governing Council member Ewald Nowotny, the danger of deflation and recession in the eurozone receded.
He noted the positive effect of the asset purchasing program that translated into higher 10-year European government bond yields.
Based on rising energy prices, Ewald Nowotny said that inflation started to go in the right direction. However, he underlined that the regulator does not consider a rise in consumer prices to be a sufficient reason to stop its quantitative easing program. The consumer price index recorded the year-on-year increase by 0.3% in the previous month.
The statistical office of the European Union (Eurostat) unveiled that the economy in the euro bloc rose by 0.4% within the first three months of 2015 and by 1% on a yearly basis.
The Governing Council member believes that desired results which the ECB’s quantitative easing program has already brought are not enough to change the current stimulating monetary policy of the Central Bank.
