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Praet: Challenges to monetary policy normalisation
The euro area economy continues to expand at a rate that is above potential, despite a slow-down relative to the exceptional growth rates observed in the second half of last year. The underlying strength of the economy supports our confidence that the sustained convergence of inflation to our aim will proceed and will be maintained even after a gradual winding-down of our net asset purchases. At the same time, uncertainties relating to rising protectionism, vulnerabilities in emerging markets and financial market volatility have gained more prominence recently. Significant monetary policy stimulus is still needed to ... (full story)