Currency Analyst since 2010

ECB: meeting and press conference

The European Central Bank, as expected, left its benchmark rate unchanged at 0.25%.

EUR/USD slid back to $1.3550.

Here are the essentials of Mario Draghi’s press conference:

  • The ECB firmly confirmed its forward guidance
  • Growth risks are on the downside
  • Monetary policy will remain accommodative for as long as needed
  • Underlying price pressures are expected to remain subdued
  • May experience a prolonged period of low inflation followed by a gradual movement towards just under 2%
  • 2 things can make the ECB act: 1) rising money market rates 2) a change in medium-term outlook for inflation
  • The ECB considers the present market developments OK
  • Low euro zone’s inflation in December was due to German data

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