18 Feb 2014
ECB's Praet: GDP growth could outperform expectations if reforms continued
FXStreet (Łódź) - ECB Executive Board member Peter Praet said today in a speech delivered in Lisbon that the central bank's monetary policy actions helped stabilize the Eurozone economy but that it was crucial for the national governments to continue implementing structural reforms in order to boost growth in the area.
If the necessary efforts are made, growth could even exceed expectations, the ECB policymaker insisted. He also assured that the central bank would maintain the accommodative monetary policy for as long as needed.
"Looking ahead, the task of all euro area policymakers is to ensure that the improvement in confidence will be validated by actual outcomes," Praet said.
Furthermore, he suggested that the upcoming asset quality review of Eurozone's 130 or so largest financial institutions would improve funding in the area, while banking supervision itself should serve as a source of integration.
Praet also acknowledged the improvements in Portugal's labor market, increased consumer and business confidence.
“We have seen consistent signs that banks in Portugal - again, more visibly than within other stressed countries - are starting to pass the easing stimulus onto their customers, that is, to firms and households," he added.
If the necessary efforts are made, growth could even exceed expectations, the ECB policymaker insisted. He also assured that the central bank would maintain the accommodative monetary policy for as long as needed.
"Looking ahead, the task of all euro area policymakers is to ensure that the improvement in confidence will be validated by actual outcomes," Praet said.
Furthermore, he suggested that the upcoming asset quality review of Eurozone's 130 or so largest financial institutions would improve funding in the area, while banking supervision itself should serve as a source of integration.
Praet also acknowledged the improvements in Portugal's labor market, increased consumer and business confidence.
“We have seen consistent signs that banks in Portugal - again, more visibly than within other stressed countries - are starting to pass the easing stimulus onto their customers, that is, to firms and households," he added.