No Plan B for ECB stimulus, says Praet

European Central Bank member Peter Praet said in a magazine interview that there is no “plan B” to the bank’s current stimulus programme.

In an interview with Belgian weekly Knack, Praet said he saw no alternative than to keep pursuing the ECB’s current measures, as he conceded that they have not succeeded in boosting Eurozone inflation.

Praet, who told Knack the ECB was ready to take all measures necessary to bring inflation up to the 2% target, said: "If you print enough money, you will always get inflation. Always.

"But if oil and commodities prices tumble, it is more difficult to allow inflation to rise.

"If a whole series of such things happens, then you can only shift the date by which you will achieve higher inflation."

Praet also told Knack that the current policy is likely to be in place until March 2017 and even longer if necessary.

On Tuesday, data released by Eurostat showed Eurozone consumer prices rose less than expected in December.

Consumer prices increased 0.2% year-on-year compared with expectations for a 0.3% gain and unchanged from November, piling pressure on the European Central Bank to do more to bring inflation back to target.