FRANKFURT (Reuters) - Substantial monetary stimulus is still needed to bring inflation in the euro zone back to the European Central Bank’s target of almost 2 percent, the ECB’s chief economist said in a newspaper interview published on Saturday.
“A substantial stimulus is still necessary,” Peter Praet told Belgian newspaper De Tijd. “Everyone agrees that we have to make sure that the reduction of the stimulus takes place in an orderly manner, without any excessive shocks.”
He later added: “If inflation becomes too high, we will react just as ruthlessly as we are now in order to get inflation back on track.”
Reporting By Francesco Canepa; Editing by Andrew Heavens