Draghi Says Euro-Area Recovery on Track Even With Greek Turmoil

Draghi: ECB Will Firmly Implement Asset-Buying Program

Europe’s economic pickup is proceeding and increased uncertainty in financial markets isn’t derailing a broadening of that recovery, European Central Bank President Mario Draghi said.

“The Governing Council will follow its monetary policy strategy and concentrate on trends in inflation and the medium term outlook for price stability,” Draghi said at a press conference in Frankfurt Thursday, after the ECB left its interest rates and asset purchase programs unchanged. “The asset purchase programs continue to proceed smoothly.”

Even as doubt over Greece’s continued existence in the euro area has peaked since the ECB’s last monetary-policy meeting, the presence of bond-buying programs and unlimited liquidity from the central bank have muted financial market reaction. Instead, the region’s economy continues to show signs of growth and even the potential for a pickup in investment.

“If unwarranted tightening or if outlook for price stability were to materially change, the Governing Council would respond by using all the instruments available within its mandate,” he said. “Economic risks have been contained as a result our monetary policy” measures.

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