Where to from here? The euro area inflation rate will turn negative in the coming months, ECB vice president Vitor Constancio told the press. “We now expect a negative inflation rate in the coming months and that is something that every central bank has to look at very closely,” Constancio was quoted as saying in an interview. However for it to transform into deflation, “you would need negative inflation rates over a longer period for that. If it is just a temporary phenomenon, I don’t see a danger,” Constancio clarified. Annual inflation in the euro area reached a mere 0.3 percent last month, far from ECB’s target of 1.9/2 percent. No additional decision to buying asset-backed securities (ABS) by the ECB since Nov. 21 has been taken yet. Nevertheless, said Constancio, quantitative easing (QE) is one “totally legal” monetary policy tool at ECB’s disposal. Is it thus doing enough?