"Economic data continues to be weaker than expected“. This is the warning issued by the president of the ECB, Mario Draghi, in the press conference that followed the last meeting of the Eurotower Board of Directors. “The persistence of uncertainty, especially about geopolitical factors and on the risk of trade protectionism – he added – they weigh on the climate”.
The number one of the Eurotower did not announce the measure most awaited by the markets, ie a new wave of Tltro, the auctions that provide banks with cheap liquidity to inject into the real economy. However, a signal has arrived: even if “this was not discussed” at today's meeting, Draghi confirmed that the slowdown in the economy "will clearly have" repercussions on future monetary policy decisions by the ECB.
In the past, operations Lter and Tlter "they have been very useful and very effective - explained Draghi - in restoring the transmission mechanisms of monetary policy": if it were necessary to reactivate them, the ECB would be ready to do so, but "on the basis of monetary policy needs, not as a measure to favor of a given sector or country”.
In any case, "the Governing Council will give itself more time to evaluate" whether the factors weighing downwards on the economy "have had a" structural "impact on the level of confidence - said the number one of the ECB - We will have a new discussion in March, when the new forecasts from the technicians will also be available”.
On the price front, Draghi noted that "accommodative monetary policy conditions and favorable wage dynamics continue to support economic expansion and inflation pressures."
Draghi also added that, while remaining confident on the continuation of the convergence of theinflation towards the target level (below but close to 2%), the ECB believes that a "significant" monetary stimulus continues to be necessary and is also "ready to adjust all her tools as appropriate".
Finally, as regards the main lines of monetary policy, Draghi confirmed that the ECB will maintain interest rates at an all-time low at least until next summer and that bond buybacks forfeited with Quantitative Easing will continue for a long time, far beyond the beginning of the rate hike.
The rate on the main refinancing operations therefore remains at zero, that on marginal operations at 0,25% and the rate on deposits that commercial banks park with the ECB itself remains at -0,40%.
