- Title: ECB's Draghi sees no need to deviate from policy path
- Date: 24th May 2017
- Summary: MADRID, SPAIN (MAY 24, 2017) (REUTERS) ****WARNING CONTAINS FLASH PHOTOGRAPHY*** VARIOUS OF ECB PRESIDENT MARIO DRAGHI ARRIVING AT NEWS CONFERENCE WITH BANK OF SPAIN GOVERNOR LUIS LINDE DRAGHI AND LINDE POSING FOR PHOTOGRAPHERS LINDE TALKING TO DRAGHI MEDIA DRAGHI TAKING A SEAT (SOUNDBITE) (English) ECB PRESIDENT, MARIO DRAGHI, SAYING: "When we introduced unconventional policy instruments in order to secure a return of inflation towards our objective, we were aware that those new instruments could result in somewhat more pronounced side effects than conventional instruments. These side effects have remained contained, but we take them into account in the formulation of our policy, in the sense that we try to minimise them, without prejudice to our ability to achieve our objective." AUDIENCE (SOUNDBITE) (English) ECB PRESIDENT, MARIO DRAGHI, SAYING: "Our current assessment of the side effects suggest therefore that there is no reason to deviate from the indications we have been consistently providing in the introductory statement to our press conferences. More generally, our monetary policy actions in pursuing our mandate will benefit from the completion of the banking union, through the creation of a European deposit insurance scheme, the third pillar of the banking union, as well as a common backstop for the Single Resolution Fund." AUDIENCE CLAPPING, DRAGHI AND LINDE SHAKING HANDS DRAGHI WAVING AS HE DEPARTS WITH LINDE
- Embargoed: 7th June 2017 16:25
- Keywords: economics finacial Eurozone ECB Mario Draghi
- Location: MADRID, SPAIN
- City: MADRID, SPAIN
- Country: Spain
- Topics: Budget/Taxation/Revenue,Government/Politics
- Reuters ID: LVA0016I797BB
- Aspect Ratio: 16:9
- Story Text: Euro zone economic growth may be improving - and European Central Bank policy will reflect this - but inflation remains weak so there is no need to deviate from the policy path already laid out, top ECB policymakers said on Wednesday (May 24).
The comments from ECB President Mario Draghi and two of his top lieutenants suggest the bank is going to be extremely cautious about dismantling its massive stimulus programme.
Draghi, Vice President Vitor Constancio and chief economist Peter Praet all acknowledged the euro zone's best economic growth run in a decade. But they played down its relevance as underlying inflation remains anaemic, wage growth is muted and the slack in the labour market remains sizable.
With growth accelerating, conservative countries like Germany have put pressure on the ECB to start winding down its unprecedented stimulus, saying the side effects are starting to outweigh the benefits.
But the side effects of the European Central Bank's unconventional policy tools have remained "contained", Draghi told a conference on financial stability organised by the Bank of Spain in Madrid. - Copyright Holder: REUTERS
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