Draghi in Berlin speaking to the Bundestag
This speech was supposed to be out later but it was published on the ECB website early.
- ECB doesn't operate in a vacuum, other policies are essential to complement monetary policy
- Other areas must contribute much more decisively
- Other policies are a precondition for higher interest rates, without them there will be no strong and stable recovery
- Low interest rates for a long period might carry the risk of overvaluation in asset markets as a result of the search for yield
- At the moment we are not seeing any overheating in the Eurozone or German economy
"Low interest rates today are necessary for a return to higher interest rates in the future. What we need now is to allow our measures to develop their full impact. And in order to reap the full benefits of our monetary policy measures, other policy areas must contribute much more decisively, both at the national and at the European level," Draghi said.
This territory has been well-trodden by Draghi in the recent past. They want to wait-and-see until at least December and they want governments to do more.
He will answer questions later so expect a steady stream of Draghi headlines to go along with everything else happening in markets today.