FRANKFURT, Sept 7 (Reuters) - The European Central Bank reaffirmed its ultra-easy policy stance on Thursday, even keeping the door open to increasing bond purchases, dashing hopes it would formally signal its intent to claw back stimulus from next year.
Following are highlights of ECB President Mario Draghi’s comments at a post-policy meeting press conference.
“While the ongoing economic expansion provides confidence that information will gradually head to levels in line with our inflation aim, it has yet to translate sufficiently in stronger inflation dynamics. Measures of underlying inflation have ticked up slightly in recent months, but overall remain at subdued levels.”
“This autumn, we will decide on the calibration of our policy instruments beyond the end of the year, taking into account the expected path of inflation and the financial conditions needed for a sustained return of inflation rates towards levels that are below but close to 2 percent.”
“A very substantial degree of monetary accommodation is still needed for underlying inflation pressures to gradually build up and support headline inflation developments in the medium term.”
“The incoming information, including our new staff projections, confirms a broadly unchanged medium-term outlook for euro area economic growth and inflation. The economic expansion, which accelerated more than expected in the first half of 2017, continues to be solid and broad-based across countries and sectors.”
“At the same time, the recent volatility in the exchange rate represents a source of uncertainty which requires monitoring with regard to its possible implications for the medium-term outlook for price stability.”
EMEA News Desk