The European Central Bank (ECB) is ready to make further adjustments to monetary policy, said Friday its president, Mario Draghi.
“I’m confident that the series of measures announced in June will result in increased demand we want and we stand ready to further adjust our policy, “said Mario Draghi at the traditional annual meeting of central bankers in Jackson Hole, Wyoming.
The ECB announced in early June a set of measures to fight against the low inflation, to restart lending and to support the recovery in the euro area.
to institute emission cut its key rate to test the transition into negative territory its deposit rates and offered banks new facilities long-term refinancing. [ID: nL6N0OM49T]
This measure, called TLTRO, sparked a “significant interest” from banks, Mario Draghi said Friday
New measures. easing by the ECB could take the form of an asset such as those made by the Federal Reserve, the Bank of England or the Bank of Japan massive procurement program.
Mario Draghi, who did not specifically mention the use of this tool in his speech given Friday or calendar items for possible new measures, welcomed positive developments in the fight against the risk of deflation in the euro zone.
“We have already recorded the movements of the exchange rate should support both aggregate demand and inflation, which should benefit further differences predictable policy between the euro area and the United States, “he said.
The euro area faces a very low inflation, low growth and high unemployment, which justify easing policy by the European Central Bank.
The situation is very different in the United States, where signs of economic recovery are increasing, which has led the Reserve Federal reduce its asset purchases and should bring it to raise interest rates at a date yet to be determined.
Monetary and fiscal policy alone will not solve the problems of the euro area said Mario Draghi.
“No easing monetary or fiscal dose can not erase the need for structural reforms in the euro area,” said the president of the ECB.
(Howard Schneider; Patrick Vignal for the French service)
No comments:
Post a Comment