There are differences between the Countries of the euro area, said yesterday Mario Draghi. “But as it is likely that these differences are not manageable? he added, ” we believe this is unlikely.” The president of the european central Bank is convinced that the single monetary policy for the entire euro area can be conducted successfully even if some Countries grow more, and they have an inflation rate that rises, such as Germany, and others grow less and have low inflation, such as Italy. “Our inflation target for the Eurozone,” he said.
Draghi was speaking in Frankfurt at a press conference later at the meeting of the Board of Governors. The council has confirmed the expectations of the markets and has decided not to change the accommodative monetary policy made interest rates low and negative, and monthly purchases of securities markets to $ 80 billion up to march, and then 60 billion up to December and beyond if there is a need: to return inflation to the Ecb target, below but close to 2%. Now, since December, to 1.1%, up from 0.6% in November. Expectations are that prices will increase probably more than 2% in Germany in the next few months (December was 1.7%), but you move a little in other Countries, especially in Italy. Draghi has made it clear that in this situation, does not intend to loosen the stimulus: the message that in the markets has sent the euro a cent against the dollar.
the president of The Ecb explained that the jump in inflation, of December is due in large part to the unexpected growth of the price of oil compared to a year ago. However, “underlying inflation grows gradually.” If the increase of prices, which considers the oil should rise above 2%, in and of itself would not be a factor that justifies a tightening of monetary policy. And it has been explained that there are four elements to which the Ecb looks at, and that will be decisive for the question of when extraordinary measures of stimulus can be reduced (tapering): you will need to look at the inflation on a medium-term horizon, not a month or two; must be in the form of price increases “long-lasting”; the inflation will be self-sustaining even without the stimulus of the Ecb; the price increases would be required to register “in the whole of the Eurozone”. This last element may be irritating to the germans, who would like the tapering started in a hurry. Draghi, however, has invited Germany to have “patience”: when the index of inflation will be in stable growth, the monetary policy will return to the traditional. “It is important to explain that the recovery in the Eurozone is in the interest also of germany”, he added.
During the press conference, occasionally appeared in the questions on Italy, both on the divergence of growth than most of the Eurozone, both with respect to the banking crises. Dragons was clear: “we do Not see any Country as unsustainable”. The banks did not want to make comments because, in the Ecb there is a separation between those who make monetary policy and who the supervision of credit institutions. On the question of the public accounts, and the italians there is also a record that in Davos, yesterday, met the minister of the Economy Pier Carlo Padoan, and the european commissioner for monetary Affairs Pierre Moscovici. The meeting “constructive”, have commented on both, but not decisive. An agreement on the request of a maneuver additional Italian for 3.4 billion in 2017 you will be able to find, has hinted Moscovici, who added that the Commission wants to “make a stronger Italy” and which will take account of negative factors, such as the earthquake. Padoan said that “we are managing the debt in a very effective way”. Back to Dragons: yesterday also reiterated that the Ecb policy has been a success, decisive in the creation of “4.5 million new jobs over the past three years.”
19 January, 2017 (amending the January 19, 2017 | 22:37)
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