5/10/2017, 1:23 PM (Source: TeleTrader)
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Draghi expresses concern over subdued core prices

Economic growth in the Eurozone is "firming and broadening" with the help of monetary policy measures, but "it is too early to declare success" in the recovery, Mario Draghi said on Wednesday. Speaking in the parliament of the Netherlands in The Hague, the president of the European Central Bank cited the ongoing weakness in core inflation, and added wages lag behind the narrowing of the output gap.

"Maintaining the current very substantial degree of monetary accommodation is still needed for underlying inflation pressures to build up and support headline inflation in the medium term. However, beyond the contribution of monetary policy, we also need measures to address the legacy of the crisis, lift potential growth and upgrade our economic ecosystem to increase resilience to future shocks," the chief rate-setter stated and once again pointed to the significance of structural reforms on the member state level, but also in Europe overall.

Draghi underscored the risk of instability stemming from "real estate dynamics or high household debt levels." Otherwise, the potential side effects of the current policy have been limited, he added and stressed the current easing strategy remains necessary.

Baha Breaking News (BBN) / IT