Highlights of Draghi’s opening statement:
- ECB is providing substantial monetary policy support
- Services and construction show ongoing resilience but some moderation
- Risks to the economic outlook remain on the downside
- Headline inflation likely to decline further
- Underlying inflation to pick up over medium term
- Incoming data point to moderate but positive growth in H2
- Weak growth delays pass-through to inflation
- Ample degree of monetary policy is still necessary
- Fiscal stance is ‘mildly expansionary’ and providing some support
- Governments with fiscal space should act in a timely manner
There wasn’t much in the opening statement and the comments about downside risks weren’t a surprise. The euro has edged higher.