ECB’s Draghi: Sees rates at present levels well past the end of QE

by | December 14th, 2017, 13:35:55 | Central Banks, ECB

Opening statement from Mario Draghi following the December 2017 ECB governing council monetary policy meeting 14 December 2017

  • QE to run until we see a sustained inflation adjustment
  • Reinvestments will help to deliver the appropriate stance
  • Very favourable financing conditions are needed
  • Indicators signal a strong pace of econ growth
  • There are strong momentum signals that inflation will pick up
  • Domestic price pressures are still muted
  • Survey results point to solid and broad growth
  • Inflation to moderate in coming months before increasing again

Forecasts;

  • 2017 GDP 2.4% vs 2.2% prior
  • 2018 2.3% vs 1.8% prior
  • 2019 1.9% vs 1.7% prior

Strong hike in growth forecasts. EURUSD up to 1.1861 from 1.1830. Inflation next.

  • 2017 CPi 1.5% unch
  • 2018 1.4% vs 1.2% prior
  • 2019 1.5% unch
  • 2020 1.7%

Not strongly adjusted. EURUSD back down to 1.1840.

Ryan Littlestone
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