ECB’s Constancio sees negative rate in Eurozone, defends Sovereign QE

FXStreet (Mumbai) - The European Central Bank (ECB) bank’s vice president, Vitor Constancio, tells German magazine Wirtschaftswoche in an interview, that the bank expects negative interest rate in the Eurozone over the coming months.

Mr. Constancio said the ECB's current inflation expectation of 0.7% for next year is outdated. "The economy would slip into recession then," he said. In defense of the government bond buying program, he said, "We have to make use of all monetary policy instruments," he said, adding the ECB isn't obsessed with buying government bonds.