Draghi Says ECB to Review Policy in December, Willing and Able to Act

The European Central Bank’s (ECB) policymakers will review the degree of monetary stimulus they have deployed when they meet in December and remain willing and able to act if needed, ECB President Mario Draghi said on Tuesday.

Consumer prices in the 19-country euro zone slipped by 0.1 percent in September, far from the bank’s aim of just below 2 percent, prompting calls for the ECB to expand or extend its 60 billion euros (£42 billion) a month of asset purchases.

The programme was launched in March to help push inflation back to the ECB’s target of just below 2 percent.

Draghi said domestic demand remained resilient in the euro zone, but that concerns over growth prospects in emerging markets were creating “downside risks to the outlook for growth and inflation”.

“In this context, the degree of monetary policy accommodation will need to be re-examined at the Governing Council’s December meeting,” he said.

“The Governing Council is willing and able to act by using all the instruments available within its mandate if warranted in order to maintain an appropriate degree of monetary accommodation.”

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.