ECB’s Constancio sees softer than expected recovery – RTRS

ECB governing council member Constancio was on the wires last minutes, via Reuters, commenting on the monetary policy and Eurozone economic outlook.

Key Headlines:

Some models show that the equilibrium rate in the Euro area is negative

There is conviction in markets that we're facing long period of low growth

If supply of safe assets increases that could increase long term rates

Hoped that the reaction of econ would be quicker to expansionary monetary policy

Recovery softer than expected

Low rates over a long period a risk to financial stability