ECB's Draghi: Most risks to eurozone come from outside the eurozone

Draghi via reuters

• inflation expectations are going down everywhere
• most of eurozone's risks are outside the zone: Brexit, trade disputes, geo-political tensions. and trade disputes.
• mentioned maintaining the extraordinary stimulus and this may have to last a long time if there is no support from fiscal policy
• says monetary policy can do its job, but in the absence of a stabilisation capacity it will only do it more slowly and with more side effects
• we are symmetric about pursuing our objective, to keep inflation above our target as much below it
• Have worked hand in hand with BoE addressing all the possible contingencies regarding Brexit for three years, but of course risks remain given the broad-ranging nature of the event
• ECB's monetary policy will continue to do its job, but the negative side effects are more and more visible as you move forward
• Ms Lagarde and the ECB are very well equipped for the next 8 years.

EURUSD virtually unmoved - nothing new here from Draghi.The gauntlet has been laid down though and the ECB have made that abundantly clear over the last couple of weeks, 'Monetary policy (bank) has reached its limits and fiscal (Gov't) policy must fill the gap.