ECB's Nowotny: There won't be a rate hike until after summer of 2019

Speaking at a conference in Zurich, European Central Bank governing council member Ewald Nowotny said that there wouldn't be any interest rates changes until after the summer of 2019 and they would be in a wait and see mode after that.

Key quotes (via Reuters)

• The revision downwards of economic growth forecast shows only slower growth, not that economies are going down.
• Trade war risks less dramatic than at first sight.
• In addition to trade war there could be an unintentional currency war which has more serious effect.
• Negative rates cannot be a permanent feature of monetary policy.
• Sees longer-term problems of Italy as more difficult, cites low growth, high unemployment.
• I wouldn't be too nervous about short-term effects of Italy's new govt, country needs structural reforms plus demand enhancing elements.
• Balance sheet of ECB will stay substantial, will remain active in markets to buy securities.
• Nobody expects eurozone to implode.