ECB’s Draghi: Inflation Under 2% in 2013
ThinkstockThe ECB left is rates unchanged but we now have many of the comments from Mario Draghi on how the ECB is maintaining a watchful eye on things in Europe. Draghi expects that inflation will remain aboveĀ 2% through 2012 but…
The ECB left is rates unchanged but we now have many of the comments from Mario Draghi on how the ECB is maintaining a watchful eye on things in Europe.
Draghi expects that inflation will remain aboveĀ 2% through 2012 but should decline to under 2% in 2013. The underlying pace of monetary expansion has been subdued and economic growth is expected to remain weak as balance sheet adjustments and high uncertainty are still weighing on the economy. Draghi also restated that the ECB is committed to a singleness of monetary policy. Economic readings are called weak and a recent survey does not signal much improvement as the growth momentum is expected to remain weak in 2013. Draghi said that banks must continue to strengthen their balance sheets as well.
OK, sorry to cut this off but by now you know the deal. Europe is in trouble and the ECB kept its refinance rate at 0.75% this morning. If a rate cut is coming, it will not be until at least December, unless any unexpected surprise announcements come.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.