The monetary policy will remain "a key ingredient" of the pick-up in inflation in the eurozone in the years to come, said the president of the european central Bank, Mario Draghi, offering a further indication that, at the next meeting on 8 December, the council is preparing to decide an extension of the program of purchase of securities, the Qe, in addition to the expected expiration of march 2017. "We can not lower our guard," said the president of the Ecb.
"we Remain as committed – said Draghi in a speech at the annual Europoean Banking Congress in Frankfurt to maintain the very substantial monetary stimulus, which is necessary to ensure a convergence of sustained inflation towards a level below, but close to, 2% over the medium term". The central banker also cited "the high degree of uncertainty", even if not explicitly referenced, as several of his colleagues in the recent days, the political uncertainty created first by the Brexit, then by the presidential elections in the United States, and, in the coming weeks and months, from the constitutional referendum in Italy, and the political elections in France and Germany.
The convergence of inflation towards the 2%, he made it clear to the Dragons, will need to be durable, even with a reduction of monetary stimulus, by understanding that this reduction is still far. "The dynamics of inflation, he said, will have to sustain itself". For now, the rise of inflation (still at 0.5%), due to the statistical effect, depends on the continuation of the monetary stimulus.
The president of the Ecb said that "we can be too optimistic about the prospettove economic", although it has been observed that today there is greater confidence in the strength of the recovery compared to a year ago, thanks to the improvement of the solidity of the banks, which has led to an improvement in credit conditions to enterprises, to the impulse of domestic demand (while it is stuck the engine of exports) and the reduction of unemployment. In 2016, the eurozone economy has finally recovered the pre-crisis and the minimum of 2013 has created four million jobs.
in Addition to geopolitical risks "remain prevalent", there are three factors, he said to the Dragons, provoking caution: the lack of profitability of banks, the relative weakness of the dynamics of inflation and the dependence of the recovery from the accommodative monetary policy.
Draghi has mentioned the problem of non-performing loans (Npl) of the banks, which remain high in some Countries (including Italy, ndr), but has noticed that they are covered by the provision of almost 50% and guarantees a good part of the rest of it.
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