 "5 Key takeaways from ECB chief Draghi's remarks")
As widely expected, the European Central Bank (ECB) kept its policy rate unchanged on Thursday, but some of President Mario Draghi’s comments sent the euro and stock markets on a wild ride.
Business Standard lists 5 key takeaways from the ECB chief’s remarks:
1. More room for stimulus:
Though ECB left its ultra-loose monetary policy unchanged, President Mario Draghi said the European region’s central bank had left the door open to more monetary stimulus.
Though ECB left its ultra-loose monetary policy unchanged, President Mario Draghi said the European region’s central bank had left the door open to more monetary stimulus.
2. Nothing on future of asset purchases:
Amid multiple instances of quantitative easing, Draghi reiterated that officials would extend the institution’s unprecedented stimulus, if needed, but he refrained from talking about the future of asset purchases. This left investors guessing, at a time when the global economy has been showing signs of uneven growth.
Amid multiple instances of quantitative easing, Draghi reiterated that officials would extend the institution’s unprecedented stimulus, if needed, but he refrained from talking about the future of asset purchases. This left investors guessing, at a time when the global economy has been showing signs of uneven growth.
3. Upsides for the euro economy:
Draghi said that the euro zone economy would continue to improve at a slower rate, as there was a threat of inflation in the coming month.
Draghi said that the euro zone economy would continue to improve at a slower rate, as there was a threat of inflation in the coming month.
4. Outside impact on the euro zone:
Draghi said it was mainly economic events outside the euro zone that would affect the economy and the economic recovery in the euro area was expected to be dampened by subdued foreign demand.
Draghi said it was mainly economic events outside the euro zone that would affect the economy and the economic recovery in the euro area was expected to be dampened by subdued foreign demand.
5. ECB will continue to act:
Draghi said the risks were to the downside, which meant performance was more likely to be worse than better, but he promised ECB would continue to act, if warranted, by using all the instruments available to keep the European economy stable.
Draghi said the risks were to the downside, which meant performance was more likely to be worse than better, but he promised ECB would continue to act, if warranted, by using all the instruments available to keep the European economy stable.