The president of the European Central Bank (ECB), Mario Draghi, spoke at a press conference after the decision to keep the interest rate and purchase program unchanged. Remained optimistic about the outlook for the Eurozone economy, and denied that he has discussed exit strategies.
In the first minutes of the conference, the euro rose in the market after Draghi said the downside risks to the economy have been reduced. He further stated that the data confirm that the economic recovery has strengthened. He saw further signs of a global recovery stronger.
On the expectation of fees, the ECB in the initial indicated that they will remain at current levels or lower, a long time after the end of the massive program of purchases. This last will continue to see a rise in sustainable inflation. The central bank is said to be ready to increase the program, either its size or its duration. This will occur if the outlook worsens.
With regard to inflation, have come to expect from the ECB, a gradual rise in the core or underlying the medium-term, at the time that stated that this indicator remains at low levels. On the risks of deflation said, “have virtually disappeared”.
As well as the statement, contained phrases from months ago do not change, Draghi re-iterated that the measures of the ECB continue to support the credit market and also called for urgent structural reforms in the region.
ECB, in line with what was expected, kept interest rate and purchase program unchanged
“We do not make monetary policy according to the likelihood of election results,” said Draghi, adding that he does not discuss politics at meetings. In regard to the world, he said that the risks of increased protectionism have been reduced.
The Italian was very blunt about the states that did not discuss an exit policy (the exit strategy). In the weeks prior to the meeting, there were notes in the media speculating on announcements of forms of output, that is to say the process of removal of stimulus by the central bank.
In response to journalists, indicated that it was discussed to remove the bias bearish in regards to rates and that are not discussed possible options for the next meeting, which is to develop unto the 8 of June.