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Draghi "MOAR QE Please" Press Conference - Live Feed
Update: Draghi hints at December QE expansion, noting that "the degree of monetary policy accommodation will need to be re-examined at our December monetary policy meeting."
- DRAGHI SEES DOWNSIDE RISKS TO GROWTH, INFLATION OUTLOOK
- DRAGHI SAYS RISKS TO ECONOMIC GROWTH ARE ON DOWNSIDE
- DRAGHI SEES INFLATION RATE RISING AT TURN OF YEAR
- Draghi Says QE to Continue Until Sept. 2016 Or Beyond If Needed
- DRAGHI SAYS ECB HAS TASKED COMMITTEES TO WORK ON INSTRUMENTS
- DRAGHI SAYS STANCE WAS NOT WAIT AND SEE
- DRAGHI: DEPOSIT RATE CUT WAS DISCUSSED
- DRAGHI SAYS ECB DISCUSSED A FURTHER LOWERING OF DEPOSIT RATE
* * *
With the formalities out of the way and all three key rates unchanged (much to the relief of the SNB and the Riksbank we're sure), the ECB can now move on to the Draghi presser, where the market i) hopes to get some manner of QE extension, and ii) will be keen to parse every last sentence to get an idea of just how dovish the governors are feeling these days.
As a reminder, virtually everyone is looking for PSPP to be extended in the not-so-distant future although, as we noted on Wedensday evening, they may have to get creative once the program moves beyond 2016 as the universe of eligible assets shrinks. In short, the question is this: Will Draghi merely expand the monetization limit per security, as he did in early September, will he increase the universe of eligibile securities, or will he simply extend the maturity of the non-open ended QE from September 2016 to some indefinite date (full preview here)?
Find out below.
(live feed)
Full text of speech:
Ladies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. I would like to thank Governor Bonnici for his kind hospitality and express our special gratitude to his staff for the excellent organisation of today’s meeting of the Governing Council. We will now report on the outcome of our meeting.
Based on our regular economic and monetary analyses, and in line with our forward guidance, the Governing Council decided to keep the key ECB interest rates unchanged. As regards non-standard monetary policy measures, the asset purchases are proceeding smoothly and continue to have a favourable impact on the cost and availability of credit for firms and households.
The Governing Council has been closely monitoring incoming information since our meeting in early September. While euro area domestic demand remains resilient, concerns over growth prospects in emerging markets and possible repercussions for the economy from developments in financial and commodity markets continue to signal downside risks to the outlook for growth and inflation. Most notably, the strength and persistence of the factors that are currently slowing the return of inflation to levels below, but close to, 2% in the medium term require thorough analysis. In this context, the degree of monetary policy accommodation will need to be re-examined at our December monetary policy meeting, when the new Eurosystem staff macroeconomic projections will be available. The Governing Council is willing and able to act by using all the instruments available within its mandate if warranted in order to maintain an appropriate degree of monetary accommodation. In particular, the Governing Council recalls that the asset purchase programme provides sufficient flexibility in terms of adjusting its size, composition and duration. In the meantime, we will continue to fully implement the monthly asset purchases of €60 billion. These purchases are intended to run until the end of September 2016, or beyond, if necessary, and, in any case, until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates below, but close to, 2% over the medium term.
Let me now explain our assessment of the available information in greater detail, starting with the economic analysis. Euro area real GDP increased by 0.4%, quarter on quarter, in the second quarter of 2015, following a rise of 0.5% in the previous quarter. The outcome for the second quarter reflected positive contributions from both domestic demand and net exports. The most recent survey indicators point to a broadly similar pace of real GDP growth in the third quarter of the year. Overall, we expect the economic recovery to continue, albeit dampened, in particular, by weaker than expected foreign demand. Domestic demand should be further supported by our monetary policy measures and their favourable impact on financial conditions, as well as by the progress made with fiscal consolidation and structural reforms. Moreover, the decline in oil prices should provide support for households’ real disposable income and corporate profitability and, therefore, private consumption and investment. However, the recovery in domestic demand in the euro area continues to be hampered by the necessary balance sheet adjustments in a number of sectors and the sluggish pace of implementation of structural reforms.
The risks to the euro area growth outlook remain on the downside, reflecting in particular the heightened uncertainties regarding developments in emerging market economies, which have the potential to further weigh on global growth and foreign demand for euro area exports. Increased uncertainty has recently manifested itself in financial market developments, which may have negative repercussions for euro area domestic demand.
According to Eurostat, euro area annual HICP inflation was -0.1% in September 2015, down from 0.1% in August. Compared with the previous month, this mainly reflects a further decline in energy price inflation. On the basis of the information available and current oil futures prices, annual HICP inflation rates will remain very low in the near term. Annual HICP inflation is expected to rise at the turn of the year, also on account of base effects associated with the fall in oil prices in late 2014. Inflation rates are foreseen to pick up further during 2016 and 2017, supported by the expected economic recovery, the pass-through of past declines in the euro exchange rate and the assumption of somewhat higher oil prices in the years ahead as currently reflected in oil futures markets. However, there are risks stemming from the economic outlook and from financial and commodity market developments which could further slow down the gradual increase in inflation rates towards levels closer to 2%. These risks are being closely monitored by the Governing Council.
Turning to the monetary analysis, recent data confirm solid growth in broad money (M3), notwithstanding a decline in the annual growth rate of M3 to 4.8% in August 2015 from 5.3% in July. Annual growth in M3 continues to be mainly supported by its most liquid components, with the narrow monetary aggregate M1 growing at an annual rate of 11.4% in August, after 12.2% in July.
Loan dynamics continued to improve. The annual rate of change of loans to non-financial corporations (adjusted for loan sales and securitisation) increased to 0.4% in August, up from 0.3% in July, pursuing its gradual recovery since the beginning of 2014. Despite these improvements, developments in loans to enterprises continue 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) increased to 1.0% in August 2015, compared with 0.9% in July. The euro area bank lending survey for the third quarter of 2015 confirms the increase in demand for bank loans, supported by the general level of interest rates, financing needs for investment purposes and housing market prospects. In addition, credit standards eased further on loans to enterprises, notably due to increasing competitive pressures in retail banking, while tightening somewhat on loans to households for house purchase. Overall, the monetary policy measures we have put in place since June 2014 provide clear support for improvements both in borrowing conditions for firms and households and in credit flows across the euro area.
To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis indicates the need to firmly implement the Governing Council’s monetary policy decisions and to monitor closely all relevant incoming information as concerns their impact on the medium-term outlook for price stability.
Monetary policy is focused on maintaining price stability over the medium term and its accommodative stance supports economic activity. However, in order to reap the full benefits from our monetary policy measures, other policy areas must contribute decisively. Given continued high structural unemployment and low potential output growth in the euro area, the ongoing cyclical recovery should be supported by effective structural policies. In particular, actions to improve the business environment, including the provision of an adequate public infrastructure, are vital to increase productive investment, boost job creation and raise productivity. The swift and effective implementation of structural reforms, in an environment of accommodative monetary policy, will not only lead to higher sustainable economic growth in the euro area but will also raise expectations of permanently higher incomes and accelerate the benefits of reforms, thereby making the euro area more resilient to global shocks. Fiscal policies should support the economic recovery, while remaining in compliance with the EU’s fiscal rules. Full and consistent implementation of the Stability and Growth Pact is crucial for confidence in our fiscal framework. At the same time, all countries should strive for a growth-friendly composition of fiscal policies.
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Will his head explode Scanners style on live teevee? One can only hope.
http://youtu.be/B_Lnz64vXB8
Someone throw a shoe!
"Someone throw a shoe!"
How about if I throw both my feet...attached to my legs doing a double spin kick?
He will do what ever was in the memo from Banksters Inc. that he recently recieved!
Draghi doesn't what a nail gun delivery!
He is a reliable Goldman plant!
"DRAGHI SAYS STANCE WAS NOT WAIT AND SEE"
I never get tired of that picture.... :)
Especially knowing he cowers from a scantily-clad Amazon with thighs most would want to lick....
What does he do? Piss, shit and tremble...
Just the mere thought that his ego is so certain and confident, until someone "moves" toward him, or is physically "above" him demonstrates how "vulnerable" this "1%" actually is....
Take note people...there is at least 99% of humans on the planet that can cause the same reaction from this worm-like "bankster"...
They should be called "banklers" (banker + toddler), instead of "banksters" (banker + gangster).
If he stutters he's lying....
..or speaks
"If he stutters he's lying...."
If he floats, he's a witch!
Burn him! Now!
Before he turns into a newt!
Wait....that pretty much looks like a newt...
albeit, a "pissing" newt, but a newt nonetheless...
What is the air-speed velocity of a newt...anyone?
snore fest......
Draghi.....gibberish....
DRAGHI SAYS RISKS TO ECONOMIC GROWTH ARE ON DOWNSIDE
allow me to rephrase that:
risks of further shrinkage are on the upside
that's right, i said shrinkage bitchez
at some point the blue pill stops working and all you're left with is shrivelly flaccid shrinkage
Draghi....everything we have done has worked....because I say it does.
Bla bla bla bla....
Why is it that everyone but bankers can see QE stimulus policies have failed to provide the expected results? <rhetorical>
Because most of their voters don't understand. Therefore licence to print money, literally!
Politicians must love it, they can basically do anything economically and nobody gives a shit. The only thing that seems to get them (the voters) worked up is if they make a joke about women/fags/trannies then they'll get run out of office. But massively steal from future generations to get elected and keep office, nobody cares because few understand.
Dig, dig, dig, the hole you're digging guys is getting deeper...
Some QE didn't work, so MOAR QE will definitely work. Nevermind that it never worked in Japan, nor in the US, but it will definitley work in the EU.
I cannot fucking believe the plebs take it like amateur pornstars.
Futures seem happy.
MOAR, MOAR, MOAR!!!!!!
More incessant jawboning. Once again the algos fall for it. Because that's what the banksters want.
Muppets told to ask questions to another muppet with an Italian accent. Topo Giggio!
every time Dragi Speaks Gold rises.. then mysteriously falls back a little... this is good news, it gives us time to acquire more Bullion because we all know where gold is going when QE powered helicopter money arrives.
www.teamramgold.com/about-us use your knowledge to help those less enlightened
his mouth is moving. therefor he lies.
That is why he was put in power to begin with.
Draghi, either put up or shut up.
DavidC
That was easy.
Endless QE by the CBers.
BOJ,ECB, Federal Reserve - Loop forever