Central Banks

Draghi press conference opening statement April 26, 2018:

  • Has confidence inflation will converge with target
  • Core inflation yet to show a convincing sign of upward trend
  • Underlying inflation subdued
  • Latest indicators suggest a moderation in the pace of growth since the start of the year
  • Temporary factors could be at work in moderation
  • Growth expected to remain solid and broad based
  • Risks to outlook remain broadly balanced
  • Risks to global factors have become more prominent, including trade
  • Inflation likely to hover around 1.5% for the rest of the year
  • Notes easing in bank lending conditions and higher demand for loans
  • Other policy areas must contribute decisively
  • Implementation of structural reforms needs to be substantially stepped up
  • Full text of the opening statement

Some dovish stuff but he’s mentioned the moderation before, so it’s not a big surprise. EUR/USD still ticked to a fresh low below 1.2150 but it’s snapped back to hit 1.2195 — the best levels of the day.

Repeats (as expected):

“We continue to expect interest rates to remain at their present levels for an extended period of time, and well past the horizon of our net asset purchases.”

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