- ECB President Draghi: Persistence of downside risks was a factor in the decision
Market news
12 September 2019
ECB President Draghi: Persistence of downside risks was a factor in the decision
- The protracted slowdown in the eurozone economy is more marked than expected
- Probability of a hard Brexit has gone up lately
- Baseline doesn't include trade tensions escalation
- There is no more calendar dependence, this should offer a clear guidepost
- There was a unanimous consensus, mainly that fiscal policy should become the main instrument (crowd laughs)
- It's high time for fiscal policy to take charge
- There was broad consensus on most monetary measures
- There were more diverse views on QE but the consensus was so broad there was no need to take a vote
- There was broad consensus forward guidance, rate cut, reinvestments and TLTRO
- There was unanimity on the need to act
- One reason to act now was that inflation expectations are re-anchoring at 1.0%-1.5%
- Draghi says ECB has QE headroom for quite a long time
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