“Signs of a sustained turnaround incore inflation they have weakened a bit”. She said it Mario Draghi to the European Parliament. Currently, added the ECB president, it emerges that “a sustained normalization of inflation could last longer than anticipated in March when for the first time we assessed the overall impact of our monetary policy measures”. "While the recovery will gradually strengthen the underlying impetus to the inflationary process, the persistent economic weakness of recent years continues to weigh on nominal wage growth, which could limit price pressures," he added.
During his speech in Strasbourg, Draghi also confirmed that the central bank's top management held the December meeting will review the degree of monetary policy accommodation on the basis of the macroeconomic projections of the ECB staff and on the basis of the analysis of the stimulus action carried out so far as well as the tools available in the event that "greater accommodation should be considered necessary". “We are ready to act, making use of all possible tools": Draghi therefore opens up to a new Qe adding that the bond purchase program "is considered to be a particularly powerful and flexible tool".
Speaking more generally of economic situation of the Eurozone the number one of the Eurotower reiterated that the “recovery continues moderately, but the downside risks from global growth and trade are clearly visible.” According to Draghi, “economic activity so far in the Eurozone it has demonstrated a certain degree of resilience to external influences that tend to weaken demand. While external demand has receded, Eurozone exports increased. The lower cost of energy and our monetary policy are supporting consumption and the creation of new capital”.
The president of the Eurotower also spoke on the Brexit issue. “We are in the first steps of a complicated process that will last months, the only perception I have is that both sides are working in good faith: two objectives must be maintained, the single currency and the single market, everything that will emerge from this complicated interaction will have to preserve these two extraordinary achievements of the European Union”. This was stated by the president of the ECB Mario Draghi to the European Parliament when questioned on the negotiations between the EU and the United Kingdom to avoid Brexit.
Immediately after these words the exchange euro Dollar, as expected, has dropped. The currency of Euroland has dropped to 1,07 towards the greenback.
