Draghi comments in his opening statement
- Some idiosyncratic factors hurting growth are starting to fade
- Other factors will extend through the year
- Protectionism and political tensions are weighing on sentiment
- Underlying inflation remains muted
- Governing Council stands ready to adjust all instruments as appropriate
- Incoming data have continued to be weak, particularly in manufacturing
- Slowdown is largely due to slower external demand but also country-specific factors
- Risks to economic outlook still tilted to the downside
- Inflation to decline towards the end of the year
- Labor-cost pressures have strengthened and broadened
- Underlying inflation is expected to increase over the medium term
That risks are still to the downside after cutting forecasts is a negative development but the TLTRO program is the big news.
