4/27/2017, 3:06 PM (Source: TeleTrader)
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Inflation still fragile, ECB's Draghi says

Economic growth is improving on a "solid and broad" scale and "things and going better," Mario Draghi said on Thursday. The president of the European Central Bank told the press in Frankfurt the institution cannot determine for sure that the path of inflation is sustainable advancing to targets. Expectations reflect developments overseas, especially in the United States, and some political uncertainty, the Eurozone's chief policymaker added and reiterated deflation risks have "virtually disappeared."

The unemployment rate, even though it dropped to 9.5%, is still indicating structural issues, as opposed to cyclical trends, he stressed. On the other hand, the euro area saw the addition of five million jobs over the last 3.5 years, erasing losses from the crisis period, Draghi noted. Other fragilities, in his view, include nonperforming loans, while risks from protectionism may be easing.

The president of the ECB claimed the popular support for the monetary union and the euro is at record levels, quoting surveys, though he acknowledged globalization has created "losers" that the European Commission should "have more social consideration." Earlier, policymakers left existing measures unchanged, after tapering the asset purchase program to €60 billion. 

Baha Breaking News (BBN) / IT