Excerpts from Speech by Mr Vítor Constâncio, Vice-President of the European Central Bank, at the XXXI Reunión Círculo de Economía, Barcelona, 30 May 2015.
- Since January, equity prices have gone up by 14% and by 18% since last May, lowering the cost of equity for non-financial firms and banks;
- the effective exchange rate has come down by 3% since January and by 12% since last May;
- corporate bond yields have come down by 56 basis points since mid-last year, yields of bank bonds by 66 basis points
- bank lending rates decreased, on average, by 70 basis points.
- Annualising this recent positive growth we come to an annual rate of 2% which contrasts with negative rates in the more recent years.
- a sustained recovery that leads to a real growth rate of 2.1% in 2017, the elimination of the present negative output gap and an inflation rate of 1.9%. This 4% nominal growth rate is equal to the average between 2000 and 2008 and much higher than the meagre 0.87% average from 2009 to 2014, with 1.8% last year
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