Oliver Q
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Oliver Q in European Markets,

Nowotny: ECB will 'clearly miss' its inflation target

The European Central Bank will "clearly miss" its inflation target of close to 2%, Ewald Nowotny, a member of the governing council at the central bank, said Thursday in a speech given in Warsaw. The dramatic fall in oil prices is the main force behind low consumer-price inflation in the eurozone, but central banks cannot influence this, he said. Stronger economic growth is needed, and the ECB must take new steps to tackle this, said Nowotny, who is also governor of Austria's central bank. "ECB is using the monetary policy instruments available -- but it is quite obvious that in the current macroeconomic situation additional sets of instruments are necessary," he said, according to a statement published on theOesterreichische Nationalbank website. The euro EURUSD, -0.2108% euro fell 0.3% to $1.1444 after Nowotny's remarks.