The most important of Mario Draghi's statement

Mario Draghi held a press conference in Vilnius, Lithuania. Here's what's most important:

• Global shocks continue to weigh on the European economy
• The ECB is ready to act in emergencies
• The ECB is ready to make adjustments to its policy if necessary
• Economic data indicate lower growth in Q2 and Q3, reflecting the current weakness in international trade
• The construction sector shows some sustainability and the labor market continues to improve
• Wage levels in the euro area continue to be strained
• All the countries in the Eurozone must insist on policies that stimulate growth
• Growth in the long run has to be achieved
• GDP projections are as follows: 2.1% in 2019 (instead of 2%), 1.4% in 2020 (instead of 1.6%), 1.4% in 2021 (instead of 1.5%)

Most important of the Q & A session:

• Economic data is not bad
• There is no significant deterioration in our vision, so extending the QE will take 7 months
• Expectations for a fall in inflation are on a global level, something that we take into account
• There is also a possibility of deflation
• Our readiness to act in emergencies was an important part of our decision. There are members of the Commission who have raised the issue of interest rate cuts
• We conducted a long discussion about whether negative rates have a bad impact on the banking sector - profits and their ability to lend. For the time being, we do not think that a negative effect has accumulated, but it is unlikely to continue if we continue with the interest rate cut
• Financial conditions are slightly tight
• The decision today on interest rates was unanimous
• The discussion today confirmed there are tools available and the determination to act if needed
• Asked if it's more likely the ECB will hike than cut as its next move, says 'no'
• We are 'not at all' accepting current market-based inflation expectations
• We should create a European authority for anti-money laundering and empower it
• Current conditions are 'not even comparable' to when I said 'whenever it takes', we have the lowest unemployment rate in many years

Photo: Flickr

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