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 ?
- We haven’t discussed future policy (relating to a question on June)
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
Back to Draghi
- We are ready to adapt to any unwarranted tightening
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