February 1, 2018 / 12:40 PM / a year ago

Euro zone still needs ECB stimulus - Praet

European Central Bank Executive Board Member, Peter Praet, speaks during a conference in Sofia, Bulgaria May 24, 2017. REUTERS/Stoyan Nenov

FRANKFURT (Reuters) - Inflation in the euro zone is still weak so the European Central Bank needs to keep in place its stimulus measures, ECB Chief Economist Peter Praet said on Thursday, repeating the bank’s long-standing guidance.

“We have not yet accomplished our mission: with inflation convergence proceeding only gradually, patience and persistence in our monetary policy remain warranted,” Praet said in a speech in Brussels.

“Inflation developments remain subdued...and we are still some distance away from meeting the Governing Council’s criteria for a sustained adjustment in the path of inflation,” Praet said. “Overall, an ample degree of monetary stimulus remains necessary.

Inflation held steady at 1.3 percent in January and is not expected to rise back to the ECB’s target of almost 2 percent for years to come.

Reporting by Balazs Koranyi; Editing by Francesco Canepa

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