ECB President Mario Draghi reiterated in an IMF conference that “broad-based growth in the euro area will continue.” He added the central bank’s policy measures “continue to underpin domestic demand, which remains the mainstay of the ongoing expansion.” Global expansion will also continue to benefit Eurozone exports.

On inflation, higher headline inflation reflected rise in energy prices. “While measures of underlying inflation remain generally muted, they have been increasing from earlier lows.” And he echoed the monetary policy account that “uncertainty around the inflation outlook is receding.” While ECB is on course to stop asset purchases, he emphasized that “significant monetary policy stimulus is still needed to support the further build-up of domestic price pressures and headline inflation developments over the medium term.”

On financial stability, he said “recent episodes of heightened financial market volatility have led to only limited contagion across countries and markets.” However, “the uncertainty triggered by a cliff-edge Brexit could have the potential to pose a more significant downside risk to financial stability.”

His full speech here.

The accounts of September ECB monetary policy meeting provide no surprise nor anything of particular importance. One thing to note is that the Governing Council was more comfortable with the inflation outlook. It’s noted that there was “broad agreement” on the “progress towards a sustained adjustment in the path of inflation”. And, “while measures of underlying inflation remained generally muted, they had been increasing from earlier lows.”

ECB added that “Comfort was drawn from the strengthening and broadening of domestic cost pressures, which were supported by the ongoing economic expansion, high levels of capacity utilisation and increasing labour market tightness, which was leading to rising wages.” Most importantly, “uncertainty around the inflation outlook was receding.”

Full accounts here.

ECB Governing Council member Ardo Hansson said urged not to be more specific on forward guidance yet. He said “To be any more precise than that, to lock in a date, to tie our hands would be rather risky”. Instead, “when we get closer, we can have another discussion if we need to adjust the language again, but this is not a debate we are going to have just yet.”

Separately, another Governing Council member Olli Rehn “core inflation is still rather weak in the euro zone at around 1 percent, as it has been for the last couple of years, so an accommodative monetary policy is still needed in Europe.”