ECB Schnabel: We should proceed with caution remain data dependent

• We should proceed with caution and remain data dependent.
• Price stability is within reach.
• Lowering policy rates gradually towards a neutral level is the most appropriate course of action.
• Once price stability has been restored, central banks can afford to tolerate moderate deviations of inflation from target, in both directions
• In the absence of such shocks, policy should be careful, not to overreact
• Monetary policy should focus on responding forcefully to shocks that have the capacity to destabilize inflation expectations
• central banks can have a greater tolerance for moderate deviations of inflation from target, in both directions.
• Monetary policy can not resolve structural issues that durably weigh on price pressures.
• Over the next 12 months and and economic expansion is still much more probable than a recession.
• Gradual removal of policy restriction remains appropriate

This article was written by Greg Michalowski at www.forexlive.com.