Tue, 21st Aug 2018
Thursday saw Mario Draghi give an upbeat take on interest rates, and play down market concerns about a potential economic slowdown, as he indicated that the bank would stay the course with plans to halt bond purchases in December.
In spite of the growing risk of a trade war, the latest data indicates that the euro-one is proceeding along a solid path for broad-based growth, according to the ECB President.
Draghi’s remarks came in a statement which saw the bank opting to keep interest rates on hold, and reaffirming plans to halve the amount of bond buying under the quantitative easing program each month, starting in September, with the goal of ending purchases in the latter part of December.
In the last meeting, in June, the ECB announced plans to wind up the bond-buying program which is credited with helping to revive the region’s economy. The move was made as the euro-zone was starting to show signs of a slowdown, following a strong period in 2017, however the bank feels that it still makes sense to continue with the plans. Draghi feels that the recovery is now past its peak, but that there is still cause for optimism. He said that it was too early to assess whether the ceasefire between the US and EU on trade was having an impact on the region, but that the move did show that there was a willingness to discuss issues, and that this is, overall, a good sign for Europe.