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.
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Draghi expects that inflation will remain above 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
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