Economy
Mario Draghi and ECB to the Rescue, Again, Maybe
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Monday may be getting a bit of fresh air from the discussions by the European Central Bank (ECB) at the European Parliament plenary debate, which was over the ECB Annual Report for 2014. ECB President Mario Draghi had prepared remarks that hint again at more quantitative easing actions at the March meeting.
As the challenges are both European and global, Draghi is communicating that these challenges demand a strong European response. Draghi’s focus ahead is on the ECB’s current monetary policy and why the ECB will reassess its stance at the March ECB meeting. Draghi also wanted to see the economic challenges today and what it takes to address them.
Draghi’s keynote statement: Economic success is also part of the solution in other fields. Therefore, mitigating economic risks deserves to be high on the political agenda.
The ECB has had to revise inflation expectations lower. At the start of 2015, its staff was forecasting inflation to reach 1.5% in 2016 and 1.8% in 2017, but by in December they were forecasting inflation of only 1.0% for 2016 and 1.6% for 2017. Without central bank actions, growth would have been significantly lower, even as the actions have been judged to be insufficient for price stability expectations.
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