The ECB has made no changes to its policy or forward guidance, and comments during the press conference are likely to confirm the bank’s optimistic but cautious stance.
“Prudence, Patience, Persistence Will Continue to Guide Policy”
Draghi’s assessment in press conference:
- Urges “Decisive Steps” to Complete Banking Union, Capital Mkt Union
- Monetary Analysis Confirms Need for Ample Degree of Stimulus
- Recovery in Private-Sector Loan Growth Ongoing
- Underlying Inflation Expected to Rise Gradually Over Medium Term
- Underlying Inflation Expected to Pick up Towards Year-End
- Uncertainty Concerning Inflation Outlook Receding
- Domestic Cost Pressures Strengthening
- Underlying Inflation Remains Generally Muted Despite Recent Pick Up
- Headline Inflation to Hover Around Current Level until Year-End
- Rise in HICP in June Reflects Higher Energy Prices
- Risk of Heightened Fincl Market Volatility Warrants Monitoring
- Risks Related to Global Factors Remain “Prominent”
- Data Point to Growth in Line With Staff Estimates
- Expansion in Global Demand Should Continue, Underpinning Exports
- Econ Growth Expected to Remain Solid, Broad-based
- ECB Stands Ready to Adjust All Instruments if Needed
- Significant Stimulus Still Needed to Underpin Inflation
- Incoming Data Consistent With Solid, Broad-based Growth
- Exchange Rate is No Policy Target
- Euro Has Appreciated Considerably in Last 1.5 Yrs Despite Ample Stimulus
