“Words have changed several times in recent months, now we wait to see the facts: the budget law and the subsequent parliamentary debate. The words, however, have done some damage: interest rates they have risen for families and for companies”. She said it today Mario Draghi, Chairman of the European Central Bank, during the press conference that followed the last meeting of the Eurotower Governing Council.
“But it remains an Italian circumstance – continued Draghi – On the other hand, the Prime Minister, the Minister of Economy and the Minister of Foreign Affairs of Italy have ensured that Italy will respect the rules".
A few hours earlier, another warning to our country had come from Pierre Moscovici, European Commissioner for Economic Affairs: “Italy is a problem“, said the Frenchman.
RATES CONFIRMED AT THE MINIMUM, QE WILL END ON DECEMBER 31st
No news on the front of monetary policy: the board of the ECB confirmed interest rates at an all-time low and Draghi reiterated that Quantiative Easing will end on 31 December 2018. Furthermore, as expected, starting from 30 October the amount of bonds purchased each month by the ECB will will halve 15 to XNUMX billion euros.
EUROZONE GDP: LIMITED FORECASTS FOR 2018 AND 2019
As for macro forecasts, the technicians of the ECB have reduced the estimates on the trend of the GDP of the Eurozone. The European Central Institute is now forecasting growth of 2% for 2018 (against the +2,1% expected three months ago), while +2019% is expected for 1,8 (instead of the +1,9% calculated in June) and +2020% (stable) for 1,7.
On the other hand, forecasts confirmed on the inflation front: +1,7% over all three years. This is a slightly weaker value than the ECB's target, which by statute aims at a price growth rate "lower but close" to 2%.
“PROTECTIONISM IS THE MAJOR SOURCE OF UNCERTAINTY FOR GLOBAL GROWTH”
However, Draghi sent out a reassuring signal on the evolution of the economic situation: "The growth of the Eurozone continues - said the number one of the ECB - and continues to support our confidence that inflation will continue to converge towards the target values even after” the end of Qe.
At the same time "the uncertainties due to growing protectionism and market volatility have gained space - Draghi specified - The main source of uncertainty we see on global growth is represented by growing trade protectionism".
