Draghi: “Global Forces conspire to keep inflation” – BBC

ECB

Milan , February 4, 2016 – 09:35

” There are forces in the global economy today that conspire to keep inflation low. ” He said the ECB President, Mario Draghi, in a speech in Frankfurt in a lecture at SUERF Conference organized by the Bundesbank in Frankfurt, explaining that “these forces could cause the slower return inflation towards our goal. But there is no reason why they should lead to a permanently lower inflation. “

credibility

“there can be no doubt that, if we decided to adopt even more political ‘accommodative, the risk of side effects will not grind to a halt “, he added the president of the ECB. “We have always in mind the need to limit distortions caused by our policies – we said Dragons – but the priority is the goal of price stability. And ‘This is the meaning of the principle of monetary dominance that is registered in the Treaties, and that makes it credible monetary policy. “

risks

“If we do not we surrender to inflation low – and certainly do not do it – on balance will return to levels in line with our objective. ” From this point of view, the risks of acting too late are superior to those of acting too soon. ” Hard to tell who refers Dragons. Certainly, oil prices so low help to make more complicated the battle against low prices conducted by the European Central Bank. You will have to wait until March to see what are the additional measures that Draghi will take to facilitate the path towards the 2% inflation target of the ECB.

Banks and deposits

Nell ‘ euro area “there is still no agreement on the third pillar of Banking Union, the guarantee on deposits, which is an essential element for a true single currency. It is therefore welcome the proposal of the EU Commission to introduce a European guarantee scheme for deposits. ” This was stated in a lecture in Frankfurt is the president of the ECB, Mario Draghi. The proposal in Brussels, said the number one Eurotower, “on the one hand sets the ambitious goal of creating a real account holders’ and the other European protection system provides a number of safeguards against moral hazard to prevent risk sharing will become a distribution of rischiSecondo Dragons a common deposit insurance is an essential part of the single currency and the proposal of the EU Commission on this issue it is realistic. In the eurozone, “there is still no agreement on the third pillar of the Union banking, deposit guarantees, which is a fundamental element for a true single currency,” said the president of the ECB, explaining that “for this, the Commission proposal to create a European deposit-guarantee scheme and ‘welcome. On the one hand – said Dragons – sets the ambitious goal of creating a true European system of protection of depositors, “which” supports the creation of an internal market for deposits in which the availability of the same and ‘guaranteed regardless of the jurisdiction with a level of confidence in the stores the same everywhere. ” On the other hand, the proposal of the EU Commission ‘and’ realistic and provides a number of safeguards against `moral hazard’ so ‘that the risk-sharing does not become a risk distribution”. Draghi reiterated that “the reduction of risks and sharing of risks are two sides of the same coin and should be pursued simultaneously: both are essential to protect the stability ‘of the European banking sector and to ensure a smooth transmission of our monetary policy.”

4 February 2016 (edited February 4, 2016 | 12:14)

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