ECB: No room for complacency on recovery
Top European Central Bank officials saw "no room for complacency" when it came to supporting the economic recovery with continued stimulus at least through the end of the year.
That was the view contained in the written account of the Jan. 19 meeting of the bank's 25-member governing council.
The officials decided it was too early to even think about easing off their stimulus measures and instead stressed their determination to keep pumping newly printed money into the economy.
While some economic signs have pointed up, officials decided that "the fundamental picture remained largely unaltered and there was no room for complacency, as risks and uncertainties had not receded substantially," the account read.
Europe faces elections in France, the Netherlands, Germany and possibly Italy this year. In each case, right-wing or radical parties opposed to the European Union and the euro itself will have a chance to test their support with voters. Britain will also be giving notice that it is leaving the EU, starting talks on the U.K.'s future trade relationship with the EU. The election of Donald Trump in the United States has raised questions about U.S. trade policy with China and other countries, a key factor in the global economy.
ECB officials viewed a recent spike in inflation as "transient" and agreed they shouldn't overreact to inflation jumping to an annual 1.8 percent in January. On paper, that meets the bank's goal of just under 2 percent - its basic benchmark to measure whether it is carrying out its mission of price stability, and the figure considered consistent with a healthy economy.
That was the view contained in the written account of the Jan. 19 meeting of the bank's 25-member governing council.
The officials decided it was too early to even think about easing off their stimulus measures and instead stressed their determination to keep pumping newly printed money into the economy.
While some economic signs have pointed up, officials decided that "the fundamental picture remained largely unaltered and there was no room for complacency, as risks and uncertainties had not receded substantially," the account read.
Europe faces elections in France, the Netherlands, Germany and possibly Italy this year. In each case, right-wing or radical parties opposed to the European Union and the euro itself will have a chance to test their support with voters. Britain will also be giving notice that it is leaving the EU, starting talks on the U.K.'s future trade relationship with the EU. The election of Donald Trump in the United States has raised questions about U.S. trade policy with China and other countries, a key factor in the global economy.
ECB officials viewed a recent spike in inflation as "transient" and agreed they shouldn't overreact to inflation jumping to an annual 1.8 percent in January. On paper, that meets the bank's goal of just under 2 percent - its basic benchmark to measure whether it is carrying out its mission of price stability, and the figure considered consistent with a healthy economy.