No prospect for deflation in euro area ABS market must be revived Rate cut could be part of a package of ECB measures Japan example a warning for every central banker Sees no urgent need for ECB action I have to say, I'm a bit baffled. He acknowledges the threat of a Japanese-style deflation while at the same time dismissing it out of hand. He talks of a package of potential actions but indicates he's in no hurry to do anything soon despite inflation running 150 basis points below the ECB's mandate. EUR/USD is firmer on the fear of more wait-and-see from the ECB. And a firmer euro is the last thing they need. We ... (full story)