Draghi: The ECB will not take action for the recovery transient of the inflation – Investing.com Spain

FRANKFURT (Reuters) – The European Central Bank will not adjust its monetary policy to contain an acceleration of inflation because the considered temporary, since it is mainly due to the increase in prices of energy, said Monday the head of the agency, Mario Draghi, to ignore the calls for the ECB to reduce economic stimulus.

The economic upturn of the euro area is gaining momentum but the labour market remains dormant, the productivity growth is weak and risks remain slightly tilted to the downside, which requires the continued help of the ECB, said Draghi before the economic affairs committee of the European Parliament.

After the inflation progressed the last month to get closer to the goal of the ECB, have increased the calls -especially from Germany – to the central bank starts to withdraw stimulus of its programme of asset purchases by 2.3 billion euros, which have kept borrowing costs at historic lows for years.

In a message similar to Peter Praet, the chief economist of the ECB, Draghi said that the central bank does not react to the oscillations of a temporary and short-term inflation data, suggesting that it is not contemplated a gradual reduction of the stimulus in the future.

“The support of our measures of monetary policy is still necessary for inflation rates to converge towards our goal with confidence and in a sustained manner”, said Draghi.

“Our monetary policy strategy provides that we should not react to isolated data and advances short-term in inflation (…) we Continue by observing the changes in inflation (harmonised) if we believe that it does not affect sustained the outlook for medium-term price stability”, said Draghi.

The asset purchases of the ECB will decline from April, but the program will continue at least until the end of this year.

The inflation in the euro zone reached 1.8 per cent in January, and it is possible to exceed the 2 percent target of the ECB in the coming months, which will increase the resistance of Germany -the largest economy in the block – to the policies of the ECB from providing low-cost money.

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