Draghi : Europe Recovering, but be careful of the Euro appreciating
European Central Bank President Mario Draghi said on Monday. The ECB was more confident that inflation could reach its target value. But that would still require patience. Especially the need to ensure a sustained recovery. Euro against other foreign currency exchange rate stayed flat for the day.
According to Reuters, Draghi pointed out that in order to achieve inflation targets. The need for the European Central Bank to provide adequate loose, too hasty (reduced QE) action. It may undermine the goal of achieving.
Draghi stressed that the recent volatility of the euro exchange rate is the source of uncertainty and needs to be monitored. As a result, policymakers need to be patient. So a modest increase in underlying inflation.
Draghi testified in the European Parliament on Monday. In the conversation optimistic about the recovery of the euro area. He said the current unemployment rate at a low of 8 years. Steady inflation, the second quarter of real GDP increased by 2.3%. In the next few quarters it is expected to exceed the historical average of the euro zone.
The European Central Bank is expected to hold a policy meeting on 26 October and to make a decision. A decision on the adjustment of next year’s debt purchase plan. Yet the focus is to slow down the pace of debt. And take into account the continued economic growth. Accelerate the achievement of inflation targets. Draghi said earlier that if it was not ready in October. It could delay the change.
Today (26th) the Euro closed down 4.4 points and reported 0.84818 against 1 US dollars, trading volume of 3,828 million US dollars. This is expected to increase by later part of this week.
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