ECB president Draghi: Significant monetary stimulus is needed
25.07.2019, 13:04

ECB president Draghi: Significant monetary stimulus is needed

  • Inflation pressures muted
  • We have tasked Eurosystem Committees to examine options
  • Data point to somewhat weaker growth in Q3 and Q4
  • Weakness primarily due to softer global growth, and hurting Eurozone manufacturing
  • Significant monetary stimulus is needed
  • Risks around growth outlook are still tilted to the downside, relating to uncertainty and protectionism
  • Inflation likely to decline in coming months but will rise near year-end
  • Underlying inflation muted
  • Labor-cost pressures strengthened due to tight labor market, but pass through not as fast as anticipated
  • Cross-check confirms that ample degree of monetary policy accommodation is still needed
  • Outlook is getting worse and worse
  • Previous forecasts showed rebound in Q2 but now incoming signs show weakness
  • The balance of risks is on the downside
  • The prolonging of uncertainty is a materializing of risks
  • Highlights easing bias and high degree of optionality
  • We had a broad discussion, on most things we converged
  • There were different nuances, as you would expect from such a broad package
  • Mandate to committee is broad
  • We don't like what we see on the inflation front
  • Any rate cut would come with mitigating measures
  • No discussion about cutting rates today
  • Want to see next round of projections before taking action

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