FOREX TradingCharts.com

Financial News: ECB's Draghi Says Rebound In Eurozone Growth Unlikely

ECB's Draghi Says Rebound In Eurozone Growth Unlikely In Near Future

09/23/2019 - 10:51:00 (RTTNews)

(RTTNews) - The outgoing European Central Bank President Mario Draghi said on Monday that it is unlikely that the euro area economy will witness a rebound in the near future.

"Looking ahead, recent data and forward-looking indicators - such as new export orders in manufacturing - do not show convincing signs of a rebound in growth in the near future and the balance of risks to the growth outlook remains tilted to the downside," Draghi said at a hearing in the European Parliament in Brussels.

The ECB Chief said the likelihood of deflation in Eurozone remains limited. However, market expectations of inflation are settling around values that are not consistent with the ECB's aim of keeping inflation "below,but close to 2 percent", Draghi added.

"Overall, in view of the outlook and uncertainties we are facing, monetary policy needs to remain highly accommodative for a prolonged period of time," Draghi said.

Earlier this month, Draghi unveiled a stimulus package with several measures including a reduction in the deposit rate to -0.50 percent and a restart of asset purchases. The ECB stimulus also included a significant change in the wording of forward guidance on interest rates that removed the reference to any specific time period until which the bank expects rates to remain low.

That said, the bank continued to signal that interest rates can be lowered further. The ECB now wants the inflation convergence, to its near 2 percent target, to consistently reflect in underlying inflation trends to start considering tightening.

"It is crucial to remain vigilant and to use the available micro- and macroprudential policy tools as necessary," Draghi said. Former IMF Managing Director Christine Lagarde is set to replace Draghi as the ECB President when his term ends at the end of October. Eurozone interest rates were raised last in July 2011 by 25 basis points and Draghi will be the only ECB President thus far who did not raise rates during his tenure.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Belgium Consumer Confidence Improves In October (07 hr(s), 35 min(s), 57 sec(s) ago)
(RTTNews) - Belgium's consumer confidence rose for the first time in three months in October, ...Full Story»

Germany May Have Entered Recession In Q3: Bundesbank (08 hr(s), 39 min(s), 57 sec(s) ago)
(RTTNews) - Germany might have entered a technical recession in the third quarter, the Bundesbank ...Full Story»

Latvia Producer Price Inflation Rises In September (09 hr(s), 10 min(s), 57 sec(s) ago)
(RTTNews) - Latvia's producer price inflation rose in September for the first time in nearly a ...Full Story»

Slovenia Output Prices Rise Further In September (09 hr(s), 18 min(s), 57 sec(s) ago)
(RTTNews) - Slovenia's output price inflation rose in September, figures from the Statistical ...Full Story»

Croatia Jobless Rate Falls In September (10 hr(s), 07 min(s), 57 sec(s) ago)
(RTTNews) - Croatia's jobless rate fell marginally in September after remaining unchanged in t ...Full Story»

Swiss Money Supply Growth Weakest In 11 Months (10 hr(s), 08 min(s), 57 sec(s) ago)
(RTTNews) - Switzerland's money supply grew at the slowest pace in nearly a year in September, ...Full Story»

Poland Retail Sales Rise In September (10 hr(s), 17 min(s), 57 sec(s) ago)
(RTTNews) - Poland's retail sales grew in September from last year, figures from Statistics Po ...Full Story»

UK Household Finances Remain Under Pressure (10 hr(s), 20 min(s), 57 sec(s) ago)
(RTTNews) - UK households' perception of financial wellbeing remained negative in October but ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Belgium Consumer Confidence Improves In October

10/21/2019 - 09:40 AM (RTTNews)
(RTTNews) - Belgium's consumer confidence rose for the first time in three months in October, ...Full Story>>

Germany May Have Entered Recession In Q3: Bundesbank

10/21/2019 - 08:36 AM (RTTNews)
(RTTNews) - Germany might have entered a technical recession in the third quarter, the Bundesbank ...Full Story>>

Latvia Producer Price Inflation Rises In September

10/21/2019 - 08:05 AM (RTTNews)
(RTTNews) - Latvia's producer price inflation rose in September for the first time in nearly a ...Full Story>>

Slovenia Output Prices Rise Further In September

10/21/2019 - 07:57 AM (RTTNews)
(RTTNews) - Slovenia's output price inflation rose in September, figures from the Statistical ...Full Story>>

Croatia Jobless Rate Falls In September

10/21/2019 - 07:08 AM (RTTNews)
(RTTNews) - Croatia's jobless rate fell marginally in September after remaining unchanged in t ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.