Some people like headlines but others like to hear the exact words. One day I’m going build a website that just has the exact quotes in central bankers own words.
“We will do what we must to raise inflation and inflation expectations as fast as possible, as our price stability mandate requires of us,” Draghi said Friday at the European Banking Congress. “If, on its current trajectory, our policy is not effective enough to achieve this, or further risks to the inflation outlook materialize, we would step up the pressure and broaden even more the channels through which we intervene, by altering accordingly the size, pace and composition of our purchases.”
That really isn’t anything new. A multitude of ECB governing council members have said they will do more if the outlook deteriorates.
The eurozone is a disaster and the European Central Bank is a gongshow but I don’t think that comment — on its own — warrants a 150 pips decline in the euro.
