Draghi Says Euro-Area Inflation Path Appears Self-Sustained
Monday, 9 July 2018 21:14 WIB | FISCAL & MONETARY | ECBDraghiMario Draghi

Mario Draghi said the improvement in euro-area inflation is on a self-sustained path, allowing the European Central Bank to withdraw its bond-buying despite the rising specter of a global trade war.

Echoing the recent language from the ECB, Draghi said the main risks relate to the œthreat of increased protectionism. He also said that œin times of heightened global uncertainty, it is more important than ever that Europe stands together, reiterating his push for governments to do more to strengthen the region™s structures.

The comments come days after the U.S. slapped tariffs on billions of dollars of imports from China, which retaliated immediately. Meanwhile, French Economy Minister Bruno Le Maire said at the weekend that Europe also won™t shy away from retaliation.

Executive Board member Benoit Coeure said in a Bloomberg TV interview over the weekend that the ECB is alert to risks from trade tensions that are rapidly escalating, but its current monetary-policy stance is working well.

In his opening remarks to lawmakers, Draghi said the ECB™s measures are playing a œdecisive role in bringing inflation to the ECB™s goal. œHowever, we need to be patient, persistent and prudent in our policy to ensure that inflation remains on a sustained adjustment path, he said.

Source : Bloomberg

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