• Warns, however, that euro area recovery is still weak
  • Says tightening of spreads is not enough
  • Banking industry to integrate further after ECB test
  • ECB is committed to develop ABS (Asset-backed securities)┬ámarket
  • However, the ABS plan has to be joint work with other institutions
  • Inflation far away from ECB target for very long time
  • Monetary policy doesn’t target long-term rates. ECB focuses on short-term rates

 

The ECB would like to use a developed ABS market to potentially conduct QE type stimulation if needed. This was part of the ECB decision announced last week by Draghi.
Coeure is speaking in Frankfurt.

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