ECB's Simkus: Inflation is on its way down

<ul><li>Rates need to stay restrictive to tame prices</li><li>Prompt monetary policy response has been effective</li></ul><p>I wouldn't label calling inflation as "transitory" to be a prompt monetary policy response but okay. The tough part for the ECB is if there are second-round effects, they might not be afforded as much room to work with given the state of the economy in the months ahead.</p>

This article was written by Justin Low at www.forexlive.com.