ECB Draghi’s press conference comments

The ECB surprised everyone by announcing a new series of refinancing operations and delaying when it expects to raise interest rates.

European policy makers now say interest rates will remain at their present levels “at least through the end of 2019” versus “at least through the summer of 2019” at its previous statement.

The ECB announced new targeted longer-term refinancing operations on a quarterly basis, starting in September 2019 and ending in March 2021.

Headline comments from Dow-Jones:

  • Draghi: Weakening in Econ Data Points to Moderation in Growth Extending in 2019
  • Weaker Econ Momentum Slowing Inflation Adjustment to Aim
  • Significant Monetary Policy Stimulus Still Needed
  • ECB Stands Ready to Adjust All Instruments, If Needed
  • Recent Data Still Weak, Reflecting Soft Foreign Demand, Special Factors
  • Near-Term Growth Momentum Weaker Than Previously Expected
  • Activity Supported by Benign Financing Conditions, Rising Wage Growth
  • Eurozone 2019 GDP Seen +1.1% on Yr vs Earlier Estimate of +1.7%
  • Eurozone 2020 GDP Seen +1.6% on Yr vs Earlier Estimate of +1.7%
  • Eurozone 2021 GDP Seen +1.5% on Yr vs Earlier Estimate of +1.5%
  • Risks Surrounding Eurozone Growth Outlook Still Tilted to Downside
  • Substantial Downward Revision to 2019 Growth Estimate
  • Measures of Underlying Inflation Remain Generally Muted
  • Headline Inflation Likely to Decline Toward Year-End
  • Underlying Inflation Expected to Increase Over Medium Term
  • Eurozone 2019 HICP Seen +1.2% on Yr vs Earlier Estimate of +1.6%
  • Eurozone 2020 HICP Seen +1.5% on Yr vs Earlier Estimate of +1.7%
  • Eurozone 2021 HICP Seen +1.6% on Yr vs Earlier Estimate of +1.8%
  • New TLTROs Will Help Ensure Favorable Bank-Lending Conditions
  • In Coming Years “Congestion” of Bank Funding
  • Design of TLTROs Reflects Changed Econ Conditions
  • Moved Calendar-Based Part of Forward Guidance From Sep to Dec 2019
  • Financing Conditions Even Eased Since Last Meeting
  • All ECB Measures Data-Driven, Following Cuts in Staff Forecasts
  • ECB Committed to Act When, If Needed
  • Decision Was Taken Unanimously
  • “Positive Sign” That There is Unanimity
  • Uncertainty Partly Related to External Factors
  • Probability of Recession “Very Low” in ECB Assessment
  • Revisions to Inflation Path Show That it Will Take Longer to Reach Target
  • We Kept Econ Risk Assessment as Being “Tilted to the Downside”
  • Latest ECB Actions Increase Resilience of Eurozone Economy
  • We Didn’t Tighten Monetary Policy When We Stopped QE
  • Conditions Are “Very, Very” Accommodative
  • Several Members Presented Option of Changing Calendar Guidance to Mar 2020
  • Markets Have “Pretty Well Understood” ECB’s Reaction Function
  • Latest Decisions Enhanced Credibility of ECB’s Foreward Guidance
  • The EUR has extended its fall outright, dropping -0.45% to a three-week low of €1.1255, as ECB President Draghi announces cuts to growth and inflation forecasts.

    Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

    Dean Popplewell

    Dean Popplewell

    Vice-President of Market Analysis at MarketPulse
    Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
    Dean Popplewell