FOREX TradingCharts.com

Financial News: ECB's Draghi Urges Central Banks To Continue Preparing

ECB's Draghi Urges Central Banks To Continue Preparing For New Challenges

08/23/2017 - 08:14:00 (RTTNews)

(RTTNews) - Monetary and regulatory policy actions and steps in supervision undertaken over the last decade have made the world more resilient, however, central banks must continue preparing for new challenges, European Central Bank President Mario Draghi said Wednesday.

"When the world changes as it did ten years ago, policies, especially monetary policy, need to be adjusted," Draghi said in a speech delivered to a gathering of Nobel laureates and economists in Lindau, Germany.

"Such an adjustment, never easy, requires unprejudiced, honest assessment of the new realities with clear eyes, unencumbered by the defence of previously held paradigms that have lost any explanatory power."

Policymakers must be aware of the gaps that are present in the existing know-how, Draghi said, adding that it is often sudden shocks that bring to light the flaws of policy frameworks.

Thus, they challenge the explanatory power of existing theories in ways that have been previously overlooked, he added.

That said, thorough analysis by researchers remain essential in policy-making, the central banker stressed.

"A policy response that has its foundation in rigorous research is less prone to being impaired by political compromise and easier to explain to the general public," Draghi said.

ECB policymakers are grappling with the dilemma posed by Eurozone's strong growth momentum and feeble inflation.

Though economic expansion had strengthened and risks to the growth outlook were broadly balanced, it is yet to translate into stronger inflation dynamics, ECB rate-setters assessed in July, according to the minutes of the session.

Emphasis is also strong on careful communication after Draghi's comments at a banking forum in Portugal late June fed market expectations of an imminent tapering, and sent yields and the euro soaring.

Given such a response, policymakers have been very careful with their words so as to avoid the kind of market turbulence dubbed "taper-tantrum".

Draghi is set to speak at the US Federal Reserve's Jackson Hole symposium in Wyoming on Friday. Markets will be watching his speech closely for clues on what lies ahead for the euro area monetary policy.

The ECB Chief and his colleagues are expected to drop any hint of a gradual withdrawal of stimulus, or tapering, in September and an actual decision in October.

Economists expect that a possible tapering would only start in January after the end of the on-going round of EUR 60 billion asset purchases a month.

Citing empirical research, Draghi said both forward guidance and quantitative easing have been successful, both in the euro area and the United States.

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


ARGENTINA: GDP Estimate Up 2.7% In 2Q17 An Annual Basis (18 min(s), 36 sec(s) ago)
(RTTNews) - The provisional estimate for Argentina's Gross Domestic Product (GDP) in the secon ...Full Story»

BRAZIL: Temer Says He Has 'no Concern' About Criminal Complaints Against Him (01 hr(s), 28 min(s), 36 sec(s) ago)
(RTTNews) - Brazil's President Michel Temer said in an interview with Reuters news agency that ...Full Story»

ARGENTINA: Consumer Confidence Rises 7.2% In September - Survey (01 hr(s), 52 min(s), 36 sec(s) ago)
(RTTNews) - The Consumer Confidence Index in Argentina increased by 7.2% in September compared to ...Full Story»

BRAZIL: Inflation Expectation By Year-end Cut To 3.2% - Central Bank (01 hr(s), 59 min(s), 36 sec(s) ago)
(RTTNews) - The Brazilian central bank's Quarterly Inflation Report presents revised projectio ...Full Story»

BRAZIL: Interest Rate Estimate Cut To 7% Per Year In 2017, 2018 - Central Bank (02 hr(s), 21 min(s), 36 sec(s) ago)
(RTTNews) - The benchmark interest rate in Brazil, known as Selic, is expected to reach 7% by year ...Full Story»

BRAZIL: Central Bank Increases GDP Growth Estimate For 2017 To 0.7% (02 hr(s), 35 min(s), 36 sec(s) ago)
(RTTNews) - Brazil's central bank increased to 0.7% from 0.5% its projection for the country&# ...Full Story»

MEXICO: Earthquake Will Not Affect Country's Rating - Moody's (02 hr(s), 41 min(s), 36 sec(s) ago)
(RTTNews) - Credit risk rating agency Moody's Investors Service said that the earthquake that ...Full Story»

BRAZIL: Preliminary CPI Rises 0.11% In September (02 hr(s), 48 min(s), 36 sec(s) ago)
(RTTNews) - Brazil's official preliminary inflation index rose 0.11% in September on a monthly ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

ARGENTINA: GDP Estimate Up 2.7% In 2Q17 An Annual Basis

09/21/2017 - 22:25 PM (RTTNews)
(RTTNews) - The provisional estimate for Argentina's Gross Domestic Product (GDP) in the secon ...Full Story>>

BRAZIL: Temer Says He Has 'no Concern' About Criminal Complaints Against Him

09/21/2017 - 21:15 PM (RTTNews)
(RTTNews) - Brazil's President Michel Temer said in an interview with Reuters news agency that ...Full Story>>

ARGENTINA: Consumer Confidence Rises 7.2% In September - Survey

09/21/2017 - 20:51 PM (RTTNews)
(RTTNews) - The Consumer Confidence Index in Argentina increased by 7.2% in September compared to ...Full Story>>

BRAZIL: Inflation Expectation By Year-end Cut To 3.2% - Central Bank

09/21/2017 - 20:44 PM (RTTNews)
(RTTNews) - The Brazilian central bank's Quarterly Inflation Report presents revised projectio ...Full Story>>

BRAZIL: Interest Rate Estimate Cut To 7% Per Year In 2017, 2018 - Central Bank

09/21/2017 - 20:22 PM (RTTNews)
(RTTNews) - The benchmark interest rate in Brazil, known as Selic, is expected to reach 7% by year ...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.