6/14/2018, 3:19 PM (Source: TeleTrader)
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Draghi: Undeniable increase in geopolitical uncertainty

Although there is an "undeniable" increase in uncertainty mostly due to geopolitical reasons the underlying strength of the Eurozone's economy in the long term is unchanged, European Central Bank President Mario Draghi told reporters on Thursday. Speaking after policymakers decided to leave key interest rates unchanged, Draghi raised the possibility of a positive surprise from fiscal expansion in the United States to counter these risks.

The decision to remain "patient, prudent and persistent" in the central bank's policy was a unanimous one, the chief of the ECB explained, adding that an extensive discussion on the economic environment and projections across time and other sources on inflation signaled to policymakers a "remarkable improvement" compared to "not long ago."

On the bank's asset purchase program, Draghi emphasized the instrument is here to stay as a new and normal part of monetary policy to be used for future contingencies.

Breaking the News / JC