- Draghi begins press conference in Frankfurt
- Earlier ECB kept all rates and QE unchanged
- Euro moving higher and DE30 coming under pressure
ECB president Mario Draghi has begun his press conference in Frankfurt following the earlier announcement that all rates would be kept unchanged and that QE would run until December 2017 or beyond if necessary. The policy statement was very similar to the prior release but there have been several comments which have caught
Selected comments are shown below:
- Medium term outlook broadly unchanged
- Saw higher than expected acceleration in economic growth in H1
- Confident inflation will return to target
- Autumn to decide on calibration of policy beyond 2017
- Exchange rate is not a policy target
The Governing council have also released there latest growth and inflation forecasts.
Economic growth forecast:
2017 2.2% (fastest since 2007) from 1.9%
2018 1.8% (unchanged)
2019 1.7% (unchanged)
2017 1.5% (unchanged)
2018 1.2% from 1.3% prior
2019: 1.5% from 1.6%
The key points here are the increase in the growth forecast for the present year to its highest level since 2007 as well as the minor downwards revisions to the inflation forecasts.
In terms of market reaction the Euro has rallied with the EURUSD moving back above the 1.20 handle. The DE30 has come under a little selling pressure with the market falling back to test 12300
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.