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

PBOC Researcher Sees Room for Higher Interest Rates
Monday, 8 January 2018 10:32 WIB

Inflasi pabrik yang lebih cepat dan keuntungan di sektor industri pada tahun lalu telah menciptakan ruang bagi kenaikan suku bunga secara keseluruhan, kata peneliti People of Bank of China, Ji Min, menurut sebuah laporan oleh China Daily. Inflasi dan nilai tukar mata uang asing juga harus diperhitu...

Most Fed Officials Backed Continued Gradual Rate Hikes
Thursday, 4 January 2018 02:28 WIB

Pejabat Federal Reserve pada bulan Desember memperdebatkan risiko terhadap prospek ekonomi AS, dengan beberapa pihak yang prihatin dengan inflasi rendah dan yang lainnya menunjukkan pertumbuhan yang kuat yang akan mendapat dorongan lebih lanjut dari pemotongan pajak. Sebagian besar peserta mengulan...

BOJ Maintains Stimulus as Inflation Lags Behind Economic Growth
Thursday, 21 December 2017 10:24 WIB

Bank of Japan membiarkan stimulus moneter tidak berubah dalam pertemuan kebijakan akhir tahun 2017, yang tersisa pada cruise control karena menunggu kenaikan inflasi yang sangat rendah. Bank sentral akan terus menargetkan suku bunga dan membeli aset keuangan untuk mencapai tujuan inflasi 2 persen, ...

RBA Gains Confidence Unemployment to Fall Further, CPI to Climb
Tuesday, 19 December 2017 08:28 WIB

Bank sentral Australia menunjukkan peningkatan kepercayaan ekonomi akan menguat lagi di tahun depan, yang berpotensi meletakkan dasar untuk pengetatan kebijakan pertama sejak 2010, menurut risalah dari pertemuan RBA di bulan Desember. Risalah tersebut mencakup diskusi yang diadakan sebelum rilis PD...

ECB leaves rates at record low, reiterates dovish guidance
Thursday, 14 December 2017 20:07 WIB

Bank Sentral Eropa tidak mengubah kebijakannya hari Kamis, mempertahankan suku bunga deposito pada tingkat negatif 0,4% dan tingkat re-financing utamanya sebesar 0%. Bank tersebut mengulangi pedomannya bahwa suku bunga akan "tetap berada pada tingkat sekarang untuk jangka waktu yang lama, dan tidak...

ANOTHER NEWS
USD/CHF Flirting With Lows, Below Mid-0.9600 Amid Notable USD Weakness
Thursday, 18 January 2018 17:16 WIB Having posted a session high level of 0.9666, the USD/CHF pair came under some selling pressure and eroded part of previous session's strong recovery gains. Despite a strong follow-through upsurge in the US Treasury bond yields, renewed US Dollar...

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.