Draghi Says ECB Needs Patience as Inflation Stays Subdued
- ECB kept interest rates unchanged, removed reference to cuts
- Officials lower forecast for inflation, raise growth outlook
European Central Bank President Mario Draghi said that risks to euro-area growth are 'broadly balanced' -- an upgrade from the ECB's previous assessment. He made the comments during a news conference following the Governing Council meeting in Tallinn, Estonia. (Source: Bloomberg)
Mario Draghi said the euro region still isn’t generating enough inflation, overshadowing improved prospects for the economy that led officials to upgrade their growth assessment.
“The risks around the growth outlook are considered to be broadly balanced,” the European Central Bank president told reporters at a news conference after a monetary policy meeting in Tallinn. “At the same time, the economic expansion has yet to translate into stronger inflation dynamics. So far, measures of underlying inflation continue to remain subdued. Therefore, a very substantial degree of monetary accommodation is still needed.”