10/12/2018, 11:16 AM (Source:
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Draghi says monetary stimulus still needed

President of the European Central Bank Mario Draghi said on Friday in his statement at the International Monetary and Financial Committee in Bali that "significant" monetary stimulus is still necessary in the euro area in the medium term in order to support medium price pressures and headline inflation developments. He added that the underlying inflation is expected to go up by the end of 2018 and then gradually in the medium term, due to rising wages, higher employment and the central bank's monetary policy. The annual euro area headline inflation is seen at 1.7% for 2018, 2019 and 2020, according to ECB's latest projections.

Real Gross Domestic Product (GDP) is expected to gain 2% in 2018, with slight slowdown in 2019 and 2020, at 1.8% and 1.7%, respectively. Risks outlined by Draghi include a no-deal Brexit (while an "orderly" Brexit is seen as merely a "limited overall risk") and uncertainties in global trade and financial markets. However, "euro area economy continues to expand in a broad-based manner," he noted, with unemployment at the lowest level in 10 years.

Breaking the News / NI