Draghi Pledges ECB Will Prevent ‘Harmful’ Second-Round Effects
- ECB is ready to act and use all instruments within mandate
- Executive Board member Praet calls for reforms in euro area
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The European Central Bank will take all the necessary steps to prevent subdued price gains from spilling over into wages, President Mario Draghi said on Friday.
“In the current context of inflation rates still being very low, the ECB will continue to ensure that harmful second-round effects do not become entrenched in price and wage-setting,” Draghi said in a statement to the International Monetary and Financial Committee in Washington that was posted on the central bank’s website. “If warranted, we will act by using all the instruments available within our mandate.”