The Chief Economist of European Central Bank Peter Praet assumes that falling oil prices will have positive effect for Europe’s development, as it will ease pressure on consumers, Bloomberg writes.

Brent oil lost more than 20% of its value since the beginning of October mostly due to weakening demand amid reducing global growth. Euro area consumers have been losing confidence, and region’s growth was the weakest in more than four years in third quarter. Weakening oil prices may provide some relief for future economic development, Praet thinks.

Local demand inside euro area is still quite high, while German economy that showed contraction first time since 2015 last quarter, shall rebound. Besides, there is data indicating about export recovery.

Still, oil prices decline worsens situation with inflation, which ECB uses as the main factor when makes decision in regards to reducing monetary stimulus.

Monetary policy of ECB in the nearest future will stay accommodative and will not tighten.