Mario Draghi has just begun his press conference in a more upbeat tone than recent months. EURUSD is limping back from its last try at 1.33 but only modestly as he sees inflation risks 'broadly balanced' and reminds us all of the 'transitory' nature of his temporary non-standard measures, as Bloomberg notes. The main thing is that the ECB is once again easing collateral demands and will now accept credit claims. This simply proves that Europe is running out of any money good assets to pledge to the ECB as "collateral." Before the European (and thus global) ponzi is over, the central banks will accept Mars bars wrappers as collateral at 100 cents on the freshly printed dollar/euro.
More headlines from ECB.
- *DRAGHI SAYS SURVEYS CONFIRM TENTATIVE SIGNS OF STABILIZATION
- *DRAGHI NO LONGER SEES `SUBSTANTIAL' DOWNSIDE ECONOMIC RISKS
- *DRAGHI SAYS IMPACT OF LTRO ON BANK FUNDING IS STILL UNFOLDING
- *DRAGHI SAYS INFLATION OUTLOOK REMAINS `BROADLY BALANCED'
- *DRAGHI SAYS GREEK PARTY LEADERS HAVE REACHED AGREEMENT
- *DRAGHI SAYS ECB WILL REVIEW COLLATERAL SITUATION IN 6 MONTHS
- *DRAGHI SAYS ECB `CONCERNED' ABOUT SLOWING DOWN IN CREDIT
- *DRAGHI SAYS BNK LENDING SURVEY DOESN'T FULLY REFLECT LTRO
- *DRAGHI SAYS ECB DIDN'T DISCUSS CHANGE IN INTEREST RATES TODAY
- Draghi Says ECB Will ‘Take More Risk’ on Collateral
- *DRAGHI SAYS TALK ABOUT ECB SHARING LOSSES `IS UNFOUNDED'
The Q&A after the briefing is usually the more interesting...
Via Reuters:
TENTATIVE SIGNS OF ECONOMIC STABILITY, RISKS
"Available survey indicators confirm some tentative signs of stabilization in economic activity at (a) low level around the turn of the year. But the economic outlook remains subject to high uncertainty and downside risks."
"This outlook is subject to downside risks. They notably relate to tensions in euro area debt markets and their potential spillover to the euro area real economy. Downside risks also relate to possible adverse developments in the global economy , higher than assumed increases in commodity prices, protectionist pressures, and the potential for a disorderly correction of global imbalances."
"We expect the euro area economy to recover very gradually in the course of 2012. The very low short-term interest rates and all the measures taken to force the proper functioning of the euro area financial sector are lending support to the euro area economy."
INFLATION
"Inflation is likely to stay above 2 percent for several months to come, before declining to below 2 percent."
PRICE STABILITY
"It is essential for monetary policy to maintain price stability for the euro area as a whole. This ensures a firm anchoring on inflation expectations in line with our aim of maintaining inflation rates below but close to 2 percent over the medium term. Such anchoring is a prerequisite for monetary policy to make its contribution to supporting economic growth and job creation in the euro area."