(Boursier.com) – Even if the ECB and its president, Mario Draghi, has not made sensational announcements on Thursday, the euro is again on the decline after some hesitation. The European currency ended the day down 0.25% to $ 1.1159 in interbank trading in New York, after being back above $ 1.12 Thursday session, shortly after the publication of the press ECB announcing a status quo on its monetary policy.
in early May, the euro reached a peak above $ 1.15, the highest since 9 months, before easing over 3 %.
on Thursday, the euro weakened after Mario Draghi press conference, reiterated that inflation was “likely to remain very low or negative in the coming months, before to recover in the second half of 2016 largely due to base effects from developments in energy prices “.
the ECB has said it is maintaining its policy in the state rates, and pursued the implementation of the battery of quantitative easing announced at its meeting on 10 March.
Starting next week, June 8, the ECB will start buy corporate bonds (corporate sector purchase program CSPP) and from 22 June, she will lead the first operation of its new series of targeted long-term refinancing operations (TLTRO II). These facilitated credit will be granted to European banks provided they agree to increase lending to the private sector advantage, in order to stimulate growth.
Mario Draghi expected more stimulation through the implementation of the measures announced in March
If it has not announced new measures, Draghi said during his press conference that there will be “more stimulation as measures (decided in March) will be implemented.” Moreover, the head of the ECB has again called on European governments to accelerate the adoption of structural reforms to boost growth, a task which the central bank can not perform alone.
the voluntarism displayed by Mario Draghi to boost growth and inflation in the euro area was accompanied on Thursday, a slight upward revision of growth forecasts and inflation from the ECB. The Eurosystem staff now expect a GDP growth of the euro area by 1.6% this year (1.4% previously) and 1.7% in 2017 and 2018 (unchanged).
The provision of harmonized inflation (HICP) for 2016 was slightly revised up to 0.2% (0.1% previously). It remains unchanged for 2017 (1.3%) and 2018 (1.6%), still below the target of the ECB, which aims to medium term rising price close to 2%.
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