The ECB, as expected, has not taken a new decision in the Governing Council meeting which was held this morning at the Hofburg Palace in Vienna but, for the first time in a year, announced a slight upward revision of the inflation estimate for this year to try again, Draghi stressed that the measures taken by the ECB “are effective.” The figure for this year was increased to 0.2% from 0.1% in March, while those for 2017 and 2018 are 1.3% and 1.6% were left unchanged.
percentage of GDP change in real terms, and annual percentage change in the consumer price
It is a marginal change but remember that in March, the Eurotower was forced to a drastic revision of this same fact: from 1% estimated last December to 0.1% in fact. It may signal the long-awaited breakthrough on prices.
Shortly before the meeting, the ECB has announced that the new company of bond purchases program start ‘on 8 June and that the first task of the four new Tltro, auctions conditioned the financing of businesses and households , will take place on June 22.
Inflation slightly up in May, ECB towards an upward revision
For the rest, Draghi called again for patience, while promising that the ECB is always ready to intervene with any instrument within its mandate in the case in which the low-inflation scenario, began to take its toll on price and wage-setting mechanisms (for now there is no evidence in this regard, he said). Before putting new initiatives in the pipeline “it is necessary to implement all the measures decided in March and see the full effects.”
The interest rates will remain at current levels or lower for an extended period and the quantitative easing program will last at least until March 2017, said Mario Draghi at the end of the Governing Council, stating that the last Qe until there will be a significant correction in inflation and that the stimuli have rebalanced the risks and the economy is gradually advancing.
“Before putting new initiatives in the pipeline is necessary to implement all the measures decided in March”
Mario Draghi
upward revision, finally, even for the eurozone growth estimates for this year has been increased to 1.6% (from 1.4% in March and 1.7% last December), those for 2017 unchanged at 1.7% and slightly down that for 2018 equally to 1.7% (from 1.8% in March). On growth continue to prevail the risks even if the budget is a slight improvement “thanks to the measures implemented and to those departing,” the ECB.
The main risks are those arising from the global economic situation, the outcome of the referendum in Britain, about which Draghi reiterated that the stay in the EU “is beneficial for both parties,” and by geopolitical tensions . If the British people voted yes in the referendum for Britain out of the EU, said Draghi, the ECB is ready to consider “any hypothetical ‘and the impact in the event of a” Brexit shock. ” “Staying in the European Union is good for Britain and Europe he does well,” added the head of the ECB.
yield on Greek government bonds to ten years
of Greece was discussed but have not been taken pending decisions that the authorities involved in the provision of the next tranche of aid in favor of Athens approved at the end May verify the effective implementation of the agreed measures. After that, for the reintroduction of the exemption that will allow Greek banks to recur to European refinancing auctions, it was not until a forthcoming Council meeting.
(Il Sole 24 Ore Thomson Plus)
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