ECB president Mario Draghi speaks in Frankfurt
- ECB is not short of instruments to deliver on mandate
- Domestic economy has remained relatively resilient
- Soft patch doesn't necessarily foreshadow a serious slump
- Would adjust rate forward guidance if there are delays to inflation convergence
- If economy were to slow more than expected, risks to wage growth may be contained
- Effects of exchange rate appreciation have now reversed
- Demand should recover, so long as downside risks do not materialise
- Remain confident that sustained convergence of inflation to target has been delayed rather than derailed
Plenty of this has already been said during the ECB meeting/press conference at the start of this month but he does sound a bit more upbeat by mentioning the resilience of the economy and that they remain confident to reach their inflation target.
That said, plenty of challenges are still abound and that will keep their hands tied for the most part. EUR/USD has pared its earlier losses from 1.1250 levels to 1.1265 currently.
