Finland Times

 

The eurozone is in a period of long-term low inflation, even on the edge of deflation, and this situation isn't going to change in the next few quarters, the National Bank of Slovakia (NBS) governor and member of the governing council of the European Central Bank (ECB), Jozef Makuch said on Tuesday.

     

Makuch said the situation was expected to remain in place for a long time, and the declared goal of 2 percent inflation wouldn't be reached before the end of 2016.

     

According to Eurostat, the inflation rate in the eurozone fell to minus 0.2 percent year-on-year in December.

     

"If the existing measures aimed at support for lending prove unsuccessful, we'll have to move towards quantitative easing," stated Makuch.

     

He believed it was premature to talk about what this easing would entail, as the program hadn't been put into force yet.  

     

Makuch warned that very low inflation was also a problem for the economy, as it wouldn't develop and function as it should.

     

According to Makuch, although the ECB's operational rules didn't count on direct support for the economy, the bank would be paying attention to this issue.