This page has been archived and commenting is disabled.
Mario Draghi's "There's No Mutiny On The ECBounty" Press Conference - Live Feed
Having served up a large bowl of nothing with the official statement, the job of jawboning 'hope' for future monetary policy idiocy falls once again on Mario Draghi's shoulders as he takes the stage in what may well be a highly contentious press conference. Will he admit the mutiny? Will he 'fess up that OMT is a mirage? Will he remove his spectacles and angrily point at a reporter?
- DRAGHI SAYS ECB WILL SOON START BUYING ABS
Press Conference begins at 830ET
The big ECB shocker this month: ECB admits that Eurozone inflation expectations have become unanchored | g+economics pic.twitter.com/nashZzRQF7
— Lena Komileva (@komileva) October 3, 2014
And the full prepared remarks:
Ladies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. We will now report on the outcome of today’s meeting of the Governing Council, which was also attended by the Commission Vice-President, Mr Dombrovskis.
Based on our regular economic and monetary analyses, and in line with our forward guidance, we decided to keep the key ECB interest rates unchanged. Following up on the decisions of 2 October 2014, we last month started purchasing covered bonds under our new programme. We will also soon start to purchase asset-backed securities. The programmes will last for at least two years. Together with the series of targeted longer-term refinancing operations to be conducted until June 2016, these asset purchases will have a sizeable impact on our balance sheet, which is expected to move towards the dimensions it had at the beginning of 2012.
Our measures will enhance the functioning of the monetary policy transmission mechanism, support financing conditions in the euro area, facilitate credit provision to the real economy and generate positive spillovers to other markets. They will thereby further ease the monetary policy stance more broadly, support our forward guidance on the key ECB interest rates and reinforce the fact that there are significant and increasing differences in the monetary policy cycle between major advanced economies.
With the measures that have been put in place, monetary policy has responded to the outlook for low inflation, a weakening growth momentum and continued subdued monetary and credit dynamics. Our accommodative monetary policy stance will underpin the firm anchoring of medium to long-term inflation expectations, in line with our aim of achieving inflation rates below, but close to, 2%. As they work their way through to the economy, our monetary policy measures will together contribute to a return of inflation rates to levels closer to our aim.
However, looking ahead, and taking into account new information and analysis, the Governing Council will closely monitor and continuously assess the appropriateness of its monetary policy stance. Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate. The Governing Council has tasked ECB staff and the relevant Eurosystem committees with ensuring the timely preparation of further measures to be implemented, if needed.
Let me now explain our assessment in greater detail, starting with the economic analysis. Euro area real GDP increased by 0.1%, quarter on quarter, in the second quarter of this year, revised up as compared with the earlier estimate. Since the summer months, incoming data and survey evidence have overall indicated a weakening in the euro area’s growth momentum. This information has now been incorporated into the most recent forecasts by private and public institutions, which indicate a downward revision of real GDP growth over the projection horizon up to 2016, with the outlook for a modest economic recovery remaining in place. This picture is broadly in line with the Governing Council’s current assessment. On the one hand, domestic demand should be supported by our monetary policy measures, the ongoing improvements in financial conditions, the progress made in fiscal consolidation and structural reforms, and lower energy prices supporting real disposable income. Furthermore, demand for exports should benefit from the global recovery. On the other hand, the recovery is likely to continue to be dampened by high unemployment, sizeable unutilised capacity, and the necessary balance sheet adjustments in the public and private sectors.
The risks surrounding the economic outlook for the euro area continue to be on the downside. In particular, the weakening in the euro area’s growth momentum, alongside heightened geopolitical risks, could dampen confidence and, in particular, private investment. In addition, insufficient progress in structural reforms in euro area countries constitutes a key downward risk to the economic outlook.
According to Eurostat’s flash estimate, euro area annual HICP inflation was 0.4% in October 2014, after 0.3% in September. Compared with the previous month, this mainly reflects a somewhat less negative contribution from energy prices and slightly stronger annual increases in food prices. A fall in industrial goods prices was partly compensated for by an increase in services price inflation. On the basis of current information and prevailing futures prices for energy, annual HICP inflation is expected to remain at around current low levels over the coming months, before increasing gradually during 2015 and 2016. This is also the picture portrayed by the most recent forecasts, which now incorporate the recent sharp fall in oil prices.
The Governing Council will continue to closely monitor the risks to the outlook for price developments over the medium term. In this context, we will focus in particular on the possible repercussions of dampened growth dynamics, geopolitical developments, exchange rate and energy price developments, and the pass-through of our monetary policy measures.
Turning to the monetary analysis, data for September 2014 continue to point to subdued underlying growth in broad money (M3), with the annual growth rate increasing moderately, however, to 2.5% in September, after 2.1% in August. Annual growth in M3 continues to be supported by its most liquid components, with the narrow monetary aggregate M1 growing at an annual rate of 6.2% in September.
The annual rate of change of loans to non-financial corporations (adjusted for loan sales and securitisation) remained negative at -1.8% in September, after -2.0% in August and -2.2% in July. On average over recent months, net redemptions have moderated from the historically high levels recorded a year ago. Lending to non-financial corporations continues to reflect the lagged relationship with the business cycle, credit risk, credit supply factors and the ongoing adjustment of financial and non-financial sector balance sheets. The annual growth rate of loans to households (adjusted for loan sales and securitisation) was 0.6% in September, after 0.5% in August. In line with some stabilisation in credit flows, the October bank lending survey for the euro area reported a net easing of credit standards on loans to enterprises and households. At the same time, it has to be kept in mind that the level of credit standards is still tight from a historical perspective. Following the completion of the ECB’s comprehensive assessment, a further strengthening of banks’ balance sheets can be expected to contribute to reducing credit supply constraints and facilitating more lending.
To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis confirms the recent decisions taken by the Governing Council to provide further monetary policy accommodation and to support lending to the real economy.
Monetary policy is focused on maintaining price stability over the medium term and its accommodative stance contributes to supporting economic activity. However, in order to strengthen investment activity, boost job creation and raise productivity growth, other policy areas need to contribute decisively. In particular, the legislation and implementation of product and labour market reforms as well as actions to improve the business environment for firms need to gain momentum in several countries. The effective implementation of structural reforms will raise expectations of higher incomes and encourage firms to increase investment today and bring forward the economic recovery. As regards fiscal policies, countries with remaining fiscal imbalances should not unravel the progress already made and should proceed in line with the rules of the Stability and Growth Pact. Throughout the procedural steps under the agreed framework, the Pact should remain the anchor for confidence in sustainable public finances. The existing flexibility within the rules should allow governments to address the budgetary costs of major structural reforms, to support demand and to achieve a more growth-friendly composition of fiscal policies. A full and consistent implementation of the euro area’s existing fiscal and macroeconomic surveillance framework is key to bringing down high public debt ratios, to raising potential growth and to increasing the resilience of the euro area economy to shocks.
We are now at your disposal for questions.
The key highlight above the ECB's balance sheet expansion is now an "expectation", not a "target", and in exchange for that he got the support of the Germans.
»
- 7348 reads
- Printer-friendly version
- Send to friend
- advertisements -
These are not the droids you're looking for......thank you, and good night.
Euro - meet cliff
Mario looks like a total PRICK.
Come on Ghordo -
defend your man's honor and integrity from all these haters on ZH.
lol. unrelated, would you defend Putin if he kissed the EU and made peace with it, or even had Russia... join it? ;-)
I seriously don't know why I should defend Mario Draghi. I could, if I wanted (and have friends who do) claim that he is doing a wonderful job of convincing everybody across the pond that the ECB is printing like mad. The more he does it, the cheaper the bill for the eurozone, the less we get pressure to "do something", which means of course CTRL+P. In fact, I often think that at the ECB there is someone that reads my comment, rolls his eyes and wishes me to just shut up
the "haters" in general hate central banking, and often don't even know the nuts and bolts of monetary "mechanics", and are convinced that "all CBs are the same". many here just hope that gold goes up, and never understood that the EUR is not against gold. let them hate whatever they want to hate
If Putin did that -- I would no longer be a fan, and have to move on.
I hear Kim Jong Un is quite the reformer, dontcha know? ;)
interesting. so your allergy for the EU is unrelated to Putin. nope, I fail to understand you. never mind. cheers
Agree, ECB has been taking back liquidity from markets as can be seen here (figure 7) (if the source is trusted), despite all Draghi's "magic" words.
"Expectations" to returning to 2012 levels (highest since post-crisis) are still "magic" words.
Yay! Dow over 17,500!
(sarc off....)
DavidC
the central printers think they can kill the natural business/economic cycles, where there can never be another recession. insanity at its finest. whats next? weathermen in Alaska try to end winter?
Which is exactly the same as saying we are going to increase leverage For EVAAARRRRR.
he'll serve up yet another bowl of "everythings just fucking great"
http://media-cache-ec0.pinimg.com/736x/58/84/93/588493bef962225f5d4ee023...
Yabber, yabber, Draghi.
Dude its bankster fiat. Just say print.
3 shell monte.
FED, ECB and BoJ being the shells and QE being the ball.
Analysts being the shills and people being the mark.
Remember the date when he proudly opened his big mouth: "DO WHATEVER IT TAKES".
It goes to show people in power ALWAYS talk and zero action, perhaps he means "DO WHATEVER IT TAKES TO LIE".
That is all these figure heads get paid to do. Come out, look important and smart with your position. And say not a fucking thing worth listening to!!! Lame narcisistic mother fuckers who don't know shit from shine-ola...
ECB President Mario Draghi's last move towards more QE is no more than stupidity on steroids, even words like misdirected and boneheaded do it a disservice. This is more proof that the Euro-zone is in big trouble, both the union and the flawed currency is again begging to crumble.
One is forced to wonder if Japan and the Yen will crash first considering how each day Japan slides closer to the economic abyss or whether the Euro will lead the way into the wastebasket. Draghi has helped the countries of Europe kick the can down the road but this only delays the failure on the Euro. More on how the Euro-zone has failed to make any real reforms in the article below.
http://brucewilds.blogspot.com/2014/09/euro-zone-and-draghi-both-mired-i...
jawboning will not work this time with the BoJ already hard at work exporting deflation ........
eur drops 100 pips. what the fuck is he jabbering about?
We never hear 'why' all these things are being done by the central banks. They all refuse to acknollege that things are on the edge of collapse if 'extraordinary' measures are not taken. Central bank intervention no seems to be accepted as a necessary part of a healthy (?) economy. I'm tired of this shit.
Draghi and the other cohorts of ex-Goldman financial terrorists that have been strategically placed in influential positions are only there to protect and serve the interests of high finance. And since almost every western country willingly stepped into their deadly debt-traps do not expect any government to provide opposition.
I have been bludgeoned by the bullshit. Here is my takeaway:
Inflation in europe is dead, and cannot be revived, but the ECB will keep beating a dead horse.
Liquidity remains cryogenically frozen in carbonite.
Eurozone GDP remains bound to the ground like Prometheus, with the eagle of incipient bank insolvency tearing out its liquidity liver on a continual basis.
We (the ecb) reserve the right to print.
The governening council will do exactly as Draghi says and will come to a "consensus" whenever Draghi tells them to.
The "emperor" spoken again
http://failedevolution.blogspot.gr/2014/09/the-emperor-spoken-again.html
Is he wearing make-up? I swear he has powder or something covering up all those blemishes. Probably from staying awake at night, raking his fingers over his face and pulling tufts of hair out trying to figure out what to do next and how to spin it.
Yeah.....it's make-up. That's how you know your looking at an actor who acts like he's in charge.
Euro $1.24 only -50 cents to go before the EU recovers.
Just once I'd like to hear these guys say that the issue is wage growth and jobs, not the fact that consumer price inflation is below 2%. They don't realize how ridiculous they sound. "Economies are not growing and wages are stagnant, so we are going to work to increase consumer prices so people have less money to spend."
The fact that these announcements are coming every few weeks shows a level of end game desperation.
we all know Draghi will do what it takes, but will he do MORE than it takes?
To see a real fucking retarding dickhead, with his fucking slimy tongue shoved so far up the filthy criminal spiv draggys calloused arsehole, go read the fucking slimy drivel by that half witted fucktard ambrose evans pritchard in the daily telegraph.
I swear that fucking clown spends his life on his knees sucking his masters cocks.
That fawning twat makes me want to vomit, with his sycophantic shite about abe and draggy.
The results of Euro austerity ?
Irish death rates.
There were 30,018 deaths registered in 2013, the highest annual figure since 2001 when 30,212 deaths occurred. The 2013 death rate was 6.5 per 1,000 population, up 0.2 from 2012. Diseases of the heart and arteries remains the most common cause of death followed by malignant cancers.
Austerity is causing a rise in both the total and per capita death rates.
Death rates per 100,000
Y2010 : 613.9
Y2011 : 622.0...
Y2012 : 629.1
Y2013 : 653.5 ( a massive jump in deaths in just one year)
This is probably a result of a decline in 20 somethings (A third decline girls in their early 20s since 2009) and a decline of social and health services.