Draghi comments at European Parliament

  • Growth momentum has slowed more than we had previously anticipated
  • We need a coherent economic strategy in the eurozone that complements and enhances the effectiveness of monetary policy
  • Slowdown is mainly due to weakness in international trade in an environment of persistent uncertainties
  • Underlying inflation remains muted
  • Recent data and forward-looking indicators do not show convincing signs of a rebound in growth in the near future
  • The longer manufacturing weakness extends, the higher the chances of a spillover
  • Enhanced guidance helps to reduce uncertainty about the expected path of interest rates in the short-to-medium term
  • ECB is ready to use all instruments
  • New two-tier system will make sure that the ability of banks to extend loans to their customers at favourable terms remains unimpaired

These comments are nothing new but they're a reminder about the poor economic conditions in the eurozone and the lack of monetary policy options.