Draghi responds to questions in Jackson Hole
- Eurozone inflation convergence is not yet self-sustained
- ECB isn't there yet on inflation, must remain on guard
- QE has worked 'very well'
- Significant degree of accommodation still warranted
`We see the recovery is proceeding. We are confident that as the output gap closes, we will see inflation converging toward the objective," Draghi said.
This is more of what we expected. Draghi is back to the wait-and-see rhetoric on what's next for monetary policy, along with some positive comments on growth. That's the status quo and, thus, it's a bit dovish compared to what he could have said.
But the pullback on these latest headlines has been minimal, down to 1.1919 from a high of 1.1941.
