“Current risks for inflation are balanced... These actions are clear monetary financing, which will be sterilised at the same time. I don’t see any danger of inflation pressures,” Kranjec said.
Eurozone central banks started buying government bonds on Monday as a key part of a $1 trillion bid to resolve the region’s debt crisis, and the ECB is expected to elaborate on how it plans to sterilise the excess liquidity next week. Kranjec, who heads the Slovenian central bank, said there was a problem of confidence in even the most developed markets: “Even with the US and UK.... a question presents itself regarding solvency, whether their AAA credit rating will keep.”