Comments from Draghi:
- Data about the economy are not bad
- There isn't a substantial worsening in the outlook, that's why the extension is for seven-months
- Drop in market-based inflation expectations is global, certainly something we take into account
- There is no probability of deflation
- There is still confidence in the baseline forecasts but uncertainty is prolonged and increased. We had hopes some would be removed. These risks have gained importance.
- Our readiness to act in case of contingencies was an important part of our discussions and it was more granular. 'Several' members raised the possibility of rate cuts
- The view that we should pursue our goals in a symmetric fashion was also discussed
- There was a long discussion about whether negative rates were hampering bank profitability that could hamper lending. So far we see no aggregate effect but it's not taken for granted there wouldn't be if we cut further, so that's why there is a mention of 'mitigating effects' in the statement
- Financing conditions have become slightly tighter
- Members raised possibility of rate cuts, APP restart, further extension in forward guidance
- The decision today was unanimous
- The discussion today confirmed there are tools available and the determination to act if needed
- Asked if it's more likely the ECB will hike than cut as its next move, says 'no'
- We are 'not at all' accepting current market-based inflation expectations
- We should create a European authority for anti-money laundering and empower it
- Current conditions are 'not even comparable' to when I said 'whenever it takes', we have the lowest unemployment rate in many years
- There is a disconnect between what markets are showing and what surveys show
- Markets are seeing something bigger than a trade dispute. Is it a disruption that goes beyond trade? I hope not but we have to take the risks seriously
The euro stumbled after the comment about several members raising the possibility of rate cuts and Draghi re-emphasizing that they're prepared to cut if 'contingencies' unfold.