Comments from Draghi:

Comments from Draghi:
  • Inflation pressures muted
  • We have tasked Eurosystem Committees to examine options
  • Data point to somewhat weaker growth in Q3 and Q4
  • Weakness primarily due to softer global growth, and hurting Eurozone manufacturing
  • Significant monetary stimulus is needed
  • Risks around growth outlook are still tilted to the downside, relating to uncertainty and protectionism
  • Inflation likely to decline in coming months but will rise near year-end
  • Underlying inflation muted
  • Labor-cost pressures strengthened due to tight labor market, but pass through not as fast as anticipated
  • Cross-check confirms that ample degree of monetary policy accommodation is still needed

Quotable:

"We have tasked Eurosystem Committees to examine options, including ways to reinforce forward guidance, mitigating measures, such as the design of a tiered system for reserve remuneration, and options for the size/composition of potential new net asset purchases"

"A significant degree of monetary stimulus continues to be necessary for financial conditions to remain very favourable and support the euro area expansion, the ongoing build-up of domestic price pressures and headline inflation developments over the medium term"