ECB’s Villeroy - Negative rates effective but have limits

ECB governing council member Francois Villeroy de Galhau assured markets today the bank is ready to act with right instruments to meet the inflation target, but maintained there is a limit to how low negative rates can go.

Key quotes

Repeats no signs of bubbles in financial markets

TLTROs meant to spur lending, not offset neg rates

Negative rates effective but have limits

Broad range of instruments to attain 2% inflation target

ECB measures to add 1 pt to inflation in 2015-2017

Despite deflationary pressures, does not see deflationary dynamics of falling prices, wages and asset prices

Euro zone is facing "deflationary pressures" from Oil prices and emerging market slowdown