FOREX TradingCharts.com

Financial News: ECB's Constancio Echoes Draghi In Being Persistent With

ECB's Constancio Echoes Draghi In Being Persistent With Policy Efforts: CNBC

06/28/2017 - 06:53:00 (RTTNews)

(RTTNews) - The slack in the euro area may be greater than the current estimates and the central bank need to be persistent with its policy efforts to bring inflation back to target of 'below, but close to 2 percent', European Central Bank Vice President Vitor Constancio told CNBC on Wednesday, echoing comments made by ECB Chief Mario Draghi a day earlier.

"What we see, what we observe is that domestic factors of inflation starting with wage and cost developments and then also price decisions are not responding the way we would expect in view of our more common estimates of this slack," Constancio told CNBC from Sintra, Portugal, where an ECB Forum on central banking is being held.

Draghi spoke at the same event on Tuesday and his comments sent the euro higher as they were construed as signals that the ECB was ready to wind down its massive stimulus, which is a mix of EUR 2.3 trillion asset purchases and ultra-low interest rates.

The ECB President said the bank can support the euro area economic recovery by adjusting the parameters of its policy instruments as deflation risks have disappeared and reflationary pressures are at play.

The ECB Chief stressed that such tweaks must be gradual and need to be taken with prudence. The policy needs to be persistent, he added.

Constancio said the divergence of wage and cost developments, and pricing behavior, from the ECB's expectations is prompting policymakers to wonder whether other variables must be considered to form an accurate view of the economy.

"That being the case it justifies fully what the president said at the end of his speech that we need persistence," Constancio said.

"If we want to bring inflation to our target of below but close to 2 percent then we have to persist in the type of monetary policy that we been adopting."

In its June 8 policy session, the ECB took its very first step towards exiting its massive stimulus by shedding the downward bias on interest rates in its forward guidance.

The ECB asset purchase scheme is set to continue till the end of this year. Economists expect the ECB to announce a tapering move in September.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2017 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Indonesia Likely To Hold Rates This Year Despite Weak Growth Momentum (08 hr(s), 40 min(s), 12 sec(s) ago)
(RTTNews) - Bank Indonesia is likely to keep its policy rate unchanged at least until the end of t ...Full Story»

RBNZ Unlikely To Raise Interest Rates Until 2019 On Weaker Inflation (08 hr(s), 50 min(s), 12 sec(s) ago)
(RTTNews) - The Reserve Bank of New Zealand is unlikely to raise its interest rate until 2019, as ...Full Story»

UK Budget Deficit Widens More Than Forecast (10 hr(s), 33 min(s), 12 sec(s) ago)
(RTTNews) - The UK budget deficit widened more-than-expected in June as debt interest increased no ...Full Story»

Croatia Jobless Rate Falls Further In June (11 hr(s), 51 min(s), 12 sec(s) ago)
(RTTNews) - Croatia's unemployment rate declined for the fifth straight month in June, figures ...Full Story»

Latvia PPI Climbs For Fifth Month (12 hr(s), 05 min(s), 12 sec(s) ago)
(RTTNews) - Latvia's producer prices increased for the fifth successive month in June, figures ...Full Story»

Ireland Factory Gate Prices Fall In June (12 hr(s), 26 min(s), 12 sec(s) ago)
(RTTNews) - Ireland's factory gate prices decreased for the first time in seven months in June ...Full Story»

Australian Financial System More Resilient To Shocks: RBA's Bullock (12 hr(s), 59 min(s), 12 sec(s) ago)
(RTTNews) - The Australian financial system is more resilient to shocks than it was in the past, R ...Full Story»

Spain Trade Deficit Widens In May (13 hr(s), 07 min(s), 12 sec(s) ago)
(RTTNews) - Spain's foreign trade gap widened in May from a year ago, as imports grew faster t ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Indonesia Likely To Hold Rates This Year Despite Weak Growth Momentum

07/21/2017 - 10:10 AM (RTTNews)
(RTTNews) - Bank Indonesia is likely to keep its policy rate unchanged at least until the end of t ...Full Story>>

RBNZ Unlikely To Raise Interest Rates Until 2019 On Weaker Inflation

07/21/2017 - 10:00 AM (RTTNews)
(RTTNews) - The Reserve Bank of New Zealand is unlikely to raise its interest rate until 2019, as ...Full Story>>

UK Budget Deficit Widens More Than Forecast

07/21/2017 - 08:17 AM (RTTNews)
(RTTNews) - The UK budget deficit widened more-than-expected in June as debt interest increased no ...Full Story>>

Croatia Jobless Rate Falls Further In June

07/21/2017 - 06:59 AM (RTTNews)
(RTTNews) - Croatia's unemployment rate declined for the fifth straight month in June, figures ...Full Story>>

Latvia PPI Climbs For Fifth Month

07/21/2017 - 06:45 AM (RTTNews)
(RTTNews) - Latvia's producer prices increased for the fifth successive month in June, figures ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.