Draghi answers questions
- We were unanimous in not outlining a timeline [on tapering]
- We aren't there yet
- We need patience
- Longer-term yields have risen but are still low by historical standards
This jump in the euro is starting to look more like dip-buying than a reaction to anything Draghi is saying. EUR/USD quickly up to 1.1550.
- "Inflation is not where we want it to be, and where it should be. We're confident it will get there, but it's not there yet"
- The last thing the ECB wants is unwarranted tightening of financial conditions
Draghi is doing everything he can to cap the euro and he's still losing the battle.
- We aren't there yet
- Factors holding back inflation will last for some time, they're not permanent
- Governing council trusts the power of its package
- Sintra speech had 'no big differences' to current stance
- Confident that ECB programme can continue smoothly
- In Autumn will look at inflation
- The response to wages is different than it was in the past. Key for us is whether it will be structural
- Staff hasn't been tasked with researching tapering options
