Draghi Says ECB Will Still Be Short of Inflation Goal by 2020
Thursday, 14 December 2017 21:34 WIB | FISCAL & MONETARY | ECBMario Draghi

Mario Draghi stopped short of declaring that the European Central Bank will meet its inflation goal in 2020, signaling that the euro-area economy isn't yet strong enough to warrant weaning off monetary stimulus.

The ECB president unveiled updated economic projections that showed stronger growth over the next three years but only slowly improving consumer-price gains. Inflation will average 1.7 percent in 2020, below the goal of just under 2 percent. Policy makers earlier kept interest rates and their quantitative-easing settings unchanged.

The Governing Council™s discussion œreflected the increasing confidence that we have in the convergence of inflation towards a self-sustained path in the medium term, Draghi said in a press conference on Thursday, adding that an œample degree of stimulus is still needed. œDomestic price pressures remain muted overall and have yet to show convincing signs of a sustained upward trend.

The ECB chief™s caution comes amid a spate of central-bank decisions in the past 24 hours that signaled tighter global monetary policies ahead. The U.S. Federal Reserve announced its third interest-rate increase of the year, China unexpectedly edged borrowing costs higher, and Norway™s central bank signaled that it may start raising interest rates earlier than previously.

The Swiss National Bank predicted inflation will exceed its mandate in late 2020, though said it won™t rush to raise rates. The Bank of England, which increased rates last month for the first time in a decade, kept policy on hold in London.

Draghi said the strong cyclical momentum could lead to further positive growth surprises in near term. Downside risks were mostly related global factors, he said.

The Governing Council will halve asset purchases to 30 billion euros ($35 billion) a month starting in January and continue for at least nine months until the end of September. It promised to increase or extend buying if the outlook for inflation worsens, and expects to keep interest rates unchanged until well past the end of net asset purchases. It will also reinvest the proceeds from maturing debt holdings for as long as necessary.

Source: Bloomberg

RELATED NEWS

Swiss National Bank keeps rates steady at -0.75%, as widely expected
Thursday, 20 September 2018 14:54 WIB

Anggota dewan Swiss National Bank (SNB) memutuskan untuk meninggalkan suku bunga deposito acuan tidak berubah di -0,75% pada penilaian moneter kuartalan yang diadakan hari ini. Bank sentral mempertahankan Target Jangkauan Libor 3-bulan stabil antara -1,25% hingga -0,25%, seperti yang diharapkan sec...

BoJ leaves monetary policy unchanged
Wednesday, 19 September 2018 10:31 WIB

Pada pertemuan kebijakan moneternya hari ini, Bank of Japan (BoJ) tidak mengubah pengaturan kebijakan moneternya, menahan suku bunga di -10bps sambil mempertahankan target hasil 10% JGB pada 0,00%. BoJ memberikan 7 hingga 2 suara, meninggalkan janjinya untuk membeli JGB (Obligasi Pemerintah Jepang)...

ECB Draghi : Do More To Shore Up Banking Sector
Tuesday, 18 September 2018 15:52 WIB

Presiden Bank Sentral Eropa Mario Draghi mendesak pemerintah zona euro pada hari Selasa untuk mengambil tindakan lebih lanjut untuk menopang sektor perbankan di kawasan tersebut, termasuk dengan membuat rencana asuransi umum untuk deposito bank. Berbicara di Paris, Mr. Draghi mengatakan bahwa semen...

European Central Bank Leaves Monetary Policy Unchanged
Thursday, 13 September 2018 19:05 WIB

Bank Sentral Eropa, seperti yang diharapkan menetapkan suku bunga tidak berubah pada hari Kamis dan menegaskan kembali rencananya untuk mengurangi ukuran program pembelian obligasi bulan depan dan mengakhiri pembelian pada bulan Desember. ECB meninggalkan suku bunga pinjaman utamanya, yang dikenal ...

Bank of England Keeps Rate Unchanged, Upgrades Growth Forecast
Thursday, 13 September 2018 18:16 WIB

Bank of England (BoE) mempertahankan suku bunga acuannya tidak berubah setelah mengangkatnya ke level tertingginya sejak 2009 pada bulan lalu. Komite Kebijakan Moneter, yang dipimpin oleh Gubernur Mark Carney, memilih dengan suara bulat untuk mempertahankan suku bunga sebesar 0,75 persen, seperti y...

POPULAR NEWS
Monday, 24 September 2018 11:35
Gold Expected To Gain Some Luster After Fed
Monday, 24 September 2018 07:15
Aussie Falls, Asia Stocks Face Drop on Trade Woes
Monday, 24 September 2018 08:11
Yen climbs as China halts trade talks with U.S
ANOTHER NEWS
EU Sets Up Payment System with Iran to Maintain Trade
Wednesday, 26 September 2018 03:44 WIB The five remaining parties to the Iran nuclear deal have agreed to establish a special payment system to allow companies to continue doing business with the regime, bypassing new sanctions imposed by the United States. Envoys from Britain, France,...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.