• ECB President Draghi: ECB will consider if negative rates need mitigating

Market news

10 April 2019

ECB President Draghi: ECB will consider if negative rates need mitigating

  • Risks to the eurozone still tilted to the downside
  • Inflation likely to decline in coming months
  • Underlying inflation to increase over the medium term
  • Underlying inflation continues to be muted
  • Ample degree of stimulus needed
  • Employment gains and wages underpin the economy
  • Incoming data continue to be weak, especially in manufacturing
  • Effect of temporary factors to unwind
  • Uncertainties relating to geopolitics, protectionism, emerging markets leaving mark on sentiment
  • Some domestic factors dampening growth are starting to fade
  • It is too early to discuss terms of TLTRO
  • It is too early to decide about tiering; tiering needs further analysis
  • We have been closely looking at the decline in inflation expectations
  • Markets are expecting less upward pressure on the labor market
  • Negative risk premium is the predominant reason that market-based inflation expectations are falling 
  • We have plenty of instruments
  • We remain fully committed to return inflation to 2 percent without delay

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