The Governing Council of the ECB is "unanimous in its determination to launch new unconventional monetary policy measures to prevent the period of low inflation from continuing too long: we will carefully evaluate the indicators and we will be ready to act quickly if necessary". This was stated by the president of the central institute, Mario Draghi, in the press conference at the end of the last board meeting, that he today he interest rates confirmed in the Eurozone to an all-time low of 0,25%.
The latest data "continue to indicate that the moderate economic recovery in the euro area is proceeding as expected" - added Draghi -, albeit in a context of "a prolonged period of low inflation, which is expected to be followed by only a gradual recovery" in the price growth.
In any case, the target is still a long way off, considering that average inflation in the currency area should come to 0,7% in April, a level much lower than the target set by the ECB, which is just below the 2%.
The picture is made even more complex by currency exchanges: the euro has just returned above 1,39 against the dollar, the highest level since 2011. On the one hand, the strength of the single currency can slow down the economic recovery, making exports less competitive on the other hand further depress inflation. All of this is a cause of "great concern", the number one of the ECB admitted today.
For these reasons, hypotheses have been circulating for months about the possibility of new measures by the European Central Bank (which will probably arrive in June, ie after the European elections), moreover openly solicited by the IMF and the OECD.
“In recent days we have received a lot of advice from various quarters on interest rates and liquidity – Draghi replied today -. We are certainly grateful for advice and respect points of view, but we are independent. If any threat to our autonomy were to be perceived, our credibility would risk being seriously damaged”.
