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3 Mar 2014
ECB's Draghi upbeat on Eurozone economic outlook
FXStreet (Łódź) - In a speech delivered before the European Parliament Committee on Economic and Monetary Affairs on Monday ECB chief Mario Draghi refused to provide detailed comments on the central bank's monetary policy plans, as the Governing Council meeting will take place as soon as this Thursday. He said however that he saw the Eurozone economy back on track.
Draghi emphasized that the Eurozone had “taken a remarkable leap forward” and that it continued moving in the right direction, and his optimistic tone lead Jamie Coleman from FXBeat to believe that it “makes a rate cut this week very unlikely.”
The ECB head stressed that EU officials should step up the efforts to strike a deal on the Single Resolution Mechanism shortly. He also added that the stress tests of EU bank balance sheets would treat sovereign bonds in the same way as any other assets.
Furthermore, Draghi reminded that the OMT program, which lies within central bank's mandate and is completely legal, was ready to be activated should the need arise.
Finally, the ECB chief said that the current developments in Ukraine should not pose much risk for the Eurozone, as the trade relations between the two were not very close. Nevertheless, he stressed that the events in Kiev should be observed with great attention.
Draghi emphasized that the Eurozone had “taken a remarkable leap forward” and that it continued moving in the right direction, and his optimistic tone lead Jamie Coleman from FXBeat to believe that it “makes a rate cut this week very unlikely.”
The ECB head stressed that EU officials should step up the efforts to strike a deal on the Single Resolution Mechanism shortly. He also added that the stress tests of EU bank balance sheets would treat sovereign bonds in the same way as any other assets.
Furthermore, Draghi reminded that the OMT program, which lies within central bank's mandate and is completely legal, was ready to be activated should the need arise.
Finally, the ECB chief said that the current developments in Ukraine should not pose much risk for the Eurozone, as the trade relations between the two were not very close. Nevertheless, he stressed that the events in Kiev should be observed with great attention.