ECB’s Draghi: Data points towards moderation of economy

ECB’s Mario Draghi press conference following the April 2018 monetary policy meeting 26 April 2018

QE will run until sustained inflation adjustment
Moderation is may reflect a pullback from the strength last year but momentum is still solid and broad based
Risks to growth are broadly balanced
Sees inflation at around 1.5% this year

So, pretty much a mild acknowledgement of the softer data but that’s all. EURUSD rising. Now at 1.2195 from 1.2146.

Eurozone reforms need to be substantially stepped up (a bit sterner rhetoric than usual)
Really going strong on Eurozone countries getting their acts together

Into the Q&A now.

Draghi: We didn’t discuss mon pol per se
There’s no strategy behind lower CSPP buys recently
Unexpected factors behind recent data weakness could be weather, strikes and timing of Easter
Some other areas could suggest softer demand
Urges caution against this softer data tempered with confidence in the economy
Confidence in inflation is unchanged but is conditional on maintaining an ample degree of accommodation
Exchange rate has stabilised so was not discussed (very short and sweet on that answer)

1.22 blows ?

That’s the can kick folks. EURUSD not disappointed by that remark.. Still above 1.22, just about

We didn’t discuss policy per se because the use of new information is important for making decisions (In June we get the next staff projections)
We need to understand whether slowdown is temporary or permanent
Constancio: Doubts we can go back to simple mon pol
Constancio: Unconventional policy could be used again

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