Investing.com – President of the European Central Bank (ECB), Mario Draghi, reiterated Thursday that the central bank in the euro zone will continue to use all monetary policy tools at its disposal during his tenure to return to reach its inflation target set at 2%.
in the press conference that followed the announcement that the ECB will not be making changes to its monetary policy, Draghi said that the ECB believes that interest rates “will remain at current or lower for much longer levels, and well past the horizon of our net acquisitions of assets”.
the president has confirmed that, as announced on 10 March, its program of asset acquisition has been extended to 80,000 million EUR and “should thus be maintained until the end of March 2017 or even later if necessary, and in any case until the board observe sustainable adjustment in the course of inflation consistent with its inflation target “.
Draghi said the ECB still intends to launch in June the new batch of special operations long-term refinancing (TLTRO II by its English acronym) and implement its program of asset purchases from the business sector.
Purchase corporate bonds
Draghi has stressed the details of its acquisition program corporate assets after the press but explained that the purchase of bonds by the business sector does not include any bank.
he added that the debt should be investment grade, with a deadline maturity of 30 years and that the risk should be shared in full.
economic evaluation
Draghi has been cautious about economic forecasts euro zone, but expects growth in the first quarter follow the line of the expansion observed during the fourth quarter of last year.
he noted that financial conditions had improved and that he expects the economic recovery eurozone take its course.
However, it has also indicated that the risks to growth “still tip the scales down.”
“Our latest policy decisions monetary have improved the general financial conditions, which should strengthen the forecasts of consumption and investment, “he said.
“However, uncertainty linked in particular to the development of economic events worldwide and geopolitical risks persist,” he explained the president of the ECB.
Money helicopter
When you have asked about the possibility of using the so-called “money helicopter” as the idea of distributing euros between citizens known, Draghi has admitted his surprise at the reactions the last meeting and made it clear that the ECB that possibility does not arise.
“we have not studied this concept,” said.
the independence of the ECB
with regard to the recent criticisms of German monetary policy of central bank policy, Draghi has insisted that “we obey the law, not political, because we are independent.”
in addition, said that the board was unanimous in defending both the independence of the ECB and the appropriateness of the current measures.
the ECB has no plans to exchange rate
“As I have said many times, the exchange rate is not an objective of monetary policy,” insisted Draghi.
ECB President it has admitted that exchange rates have been important factors for growth and inflation but said he is convinced that the measures implemented in March have been and continue to be effective in preventing side effects on inflation.
There is speculation about the Brexit
Draghi has refused to speculate on the outcome of the referendum to be held on June 23 in the UK on membership of the nation European Union (EU).
the ECB has simply stated that the Brexit, as known to the decision to leave the EU, is only a “limited risk” that could threaten recovery euro zone.
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