Thursday, February 4, 2016

Dragons in love with the “complottone” – The Time

ECB backs up  Europes Efforts to Contain Crisis with rate cut

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in the global economy, “today there are forces that conspire to keep inflation low,” but the ECB “will not surrender” to this hypothesis and will continue to operate to maintain a price level “in line with its objectives.”

Mario Draghi spoke from Frankfurt, during an event organized by the Bundesbank, to make clear that the European Central Bank will not make any step back from the target to heat the inflation rate without adequate recovery threatens to plunge the euro area economy.

The risk is emphasized by the Bulletin of the Institute, according to which in the next few months HICP inflation rates are likely to “go into negative territory and recover only later in 2016″. In the global economy, therefore, it is the alarm of Dragons, “there are forces today that conspire to keep inflation low.” “These forces could cause inflation more slowly return to our goal, but there are no reasons why these forces should lead to lower inflation permanently.”

“If we do not surrender to the low inflation and certainly we do not, the state in which we are, back to levels in line with our objectives. The risks of acting too late, outweigh the risks of acting too soon, “explains the president of the Eurotower.

The same ECB Governing Council reiterates that March is the date by which the “review and possibly reconsider the stance of monetary policy.” And Dragons strengthens the hypothesis that new extraordinary measures are not excluded, indeed.

The words of the president of the ECB give impetus to European shares, except Frankfurt, close higher boosted by the recovery of the price of crude oil and by the determination of the Dragons to bring inflation on track.

“There can be no doubt that, if we decided to adopt even more accommodative policies, the risk of side effects will not grind to a halt – clarifies Dragons – we are aware of the need to limit distortions caused by our policies, but the priority is price stability. ”

Dragons finally devoted a passage of his speech to the issue of common guarantee on bank deposits, an issue repeatedly raised by Italy: in the euro area, says, “still lacks a agreement on the third pillar of banking Union, the guarantee on deposits, an essential element of a true single currency. ”

“For this reason – he added – it is welcome the Commission’s proposal to introduce a European guarantee scheme of deposit insurance,” which “sets the ambitious goal of introducing a true European system of protection of depositors ‘and is a’ realistic drawing and provides several safeguards against moral hazard to prevent the sharing of risks becoming a distribution of risks. “

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Leo. Ven.

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