The president of the European Central Bank reiterates his commitment to lift inflation back to normal levels. Mario Draghi is speaking in the Brookings Institute in Washington.
EUR/USD was already below the highs, holding on to 1.27 towards the speech. and is ticking below this level.
He also says that the ECB has acted aggressively. Does this mean that there is not much left to do? The moves of the euro are not that strong. But, the answer is: not exactly, he says that the measures (ABS, TLTRO, etc.) will have a sizable impact on the ECB’s balance sheet.
Yet again, he is pushing the ball towards the governments and calls them to do more. This is not new.
Basically he is repeating things we already know. But, we already know that the ECB is set to further loosen monetary policy. Even if the Fed moves slowly and with caution, it is moving to tighten monetary policy, while the ECB is moving to loosen monetary policy.