Draghi speaking from Washington
- Measures of underlying inflation is still not convincing yet
- A very substantial degreee of monetary policy is still needed
Trying to be dovish but the market has had its expectation peaked by the overnight ECB sources story.
Nothing here we haven’t heard before;
Our asset purchase programme (APP), at the current monthly pace of €60 billion, is intended to run until the end of December this year, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim. The net purchases are made alongside reinvestments of the principal payments from maturing securities purchased under the APP. Later this year we will decide on the calibration of our policy instruments beyond the end of 2017, taking into account the expected path of inflation and the financial conditions needed for a sustained return of inflation rates towards our objective.
Full speech here.