Mario Draghi speech in Brussels

Mario Draghi outlined in his speech at Brussels yesterday that unprecedented actions might be taken to boost growth in the Eurozone.   Present at the European parliament, Draghi also commented on the fact that his ultra-long loan programme requires much efforts from banks, which will get into effect by December. This TLTROs scheme is one of the new strategies from the ECB.   There was an expectation of more drastic stimulus measures from the European Central Bank such as Quantitative Easing (QE).   The Governing Council as explained by Draghi will jump into immediate action if ever there is a blurry outlook in term of medium-term inflation.   Last month, ECB’s President Draghi has announced that price stability would be maintained if more economic reforms are invested from the government. Also, fiscal stimulus would be more than welcomed.   Draghi has not lacked behind acclaiming the wonderful job done by the ECB during the past three years. Notably, State funding costs have decreased due to the buying of soverign bonds of member states.   He launched an appeal to private held companies to give a boost to the labour market through which structural reforms would be more consolidated.   Source: The Sydney Morning Herald
Priscilla Camryn By: Priscilla Camryn