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4/27/2017, 2:51 PM (Source: TeleTrader)
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Draghi: No need to discuss tapering QE now

President of the European Central Bank (ECB) Mario Draghi said on Thursday that there is no need for Eurozone policymakers to discuss tapering the quantitative easing (QE) program at this moment. He added that, for now, the ECB does not intend to deviate from indications consistently provided in its monetary policy statements.

Speaking during a Q&A session after the central bank decided to stand pat on policy, Draghi said that there is no evidence to alter the ECB's assessment of the inflation outlook and that the guidance that the ECB provides relates not just to the conditions under which the bank will withdraw stimulus but also change interest rates. Therefore, members of the Governing Council would not raise the cost of borrowing before winding down the easing program, as one member of the audience suggested, the rate-setter explained.

Asked whether the potential victory of the centrist Emmanuel Macron in French presidential elections would affect the bank's assessment of economic outlook in the euro area, Draghi said the bank does not "do monetary policy based on likely election outcomes."

Baha Breaking News (BBN) / IB