August 14, 2020

Draghi (ECB) ensures that uncertainty about the outlook for inflation is "moving away"


In a speech delivered in Bali (Indonesia) during the annual meeting of the International Monetary Fund (IMF) and the World Bank, the Italian banker stressed that the economy of the eurozone "continues to expand in a broad manner", despite the fact that alerted that there is "some moderation" after the "strong growth" of 2017.

Thus, Draghi has indicated that the monetary policy of the ECB "continues to support" domestic demand, which in turn has raised inflation data. The monetary authority has recalled that the acceleration of prices is due, above all, to the appreciation of energy.

"The uncertainty surrounding the inflation outlook is moving away," said Draghi. "We expect core inflation to rebound towards the end of the year and then gradually increase in the medium term, supported by our measures," he added.

The projection of the ECB is that the general inflation rate will moderate at the end of 2018 to 1.7%, from the 2.1% registered in September, where it will stabilize during the next two years.

Also, the head of price stability in the euro zone has warned that the changes that are taking place in the real estate markets and in the non-banking financial sector should be monitored, due to the risks involved.

"To collect all the benefits of our monetary policy measures, other areas must make a decisive contribution to increasing the long-term growth potential and reducing vulnerabilities," he added, referring to the implementation of structural reforms, the reduction of debt and strict adherence to the Stability and Growth Pact.

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