Draghi Says There’s No Inflation Risk in Any Euro Country
European Central Bank President Mario Draghi said there are no inflation risks in the 17-nation euro area and the ECB will continue to provide liquidity to solvent banks.
“Inflation expectations remain well anchored and there is no inflation risk in any euro-area country,” Draghi said in a speech in Frankfurt today. “And should risks to price stability emerge, the Eurosystem has sufficient tools at its disposal to absorb excess liquidity.”
The ECB has lent banks more than 1 trillion euros ($1.26 trillion) for three years at its benchmark rate, which it held at a record low of 1 percent last week. With the sovereign debt crisis damping growth and price pressures, Draghi said on June 6 that “a few” ECB policy makers had called for a rate cut.
He said today that the ECB’s commitment to price stability “will continue to guide our policy in the time to come.”
Draghi also said a blueprint for the future of Europe’s monetary union that he is working on with European Union President Herman Van Rompuy, Luxembourg’s Jean-Claude Juncker and European Commission President Jose Barroso will be published “very soon.”
“Markets and people need to be reassured that we are still travelling together,” Draghi said.
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