Thursday October 2, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Draghi says ECB must be particularly watchful on low inflation

By Jeff Black & Alessandro Speciale

European Central Bank President Mario Draghi signaled policy makers are ready to take action in June should they see low inflation becoming entrenched.

“What we need to be particularly watchful for at the moment is, in my view, the potential for a negative spiral to take hold between between low inflation, falling inflation expectations and credit, in particular in stressed countries,” Draghi said in a speech at the ECB Forum in Sintra, Portugal. “We are not resigned to allowing inflation to remain too low for too long.”

Draghi said the key issue for the ECB right now is the timing of any action. Officials have said they’re working on a package of possible measures for the June 5 policy meeting, including interest-rate cuts and liquidity injections, while holding out the prospect of quantitative easing as a more powerful option.

Draghi didn’t elaborate on any possible measures beyond his comments after the May 8 policy meeting, when he said officials were “comfortable” with acting next time and willing to use unconventional instruments if needed.

ECB Vice President Vitor Constancio said the conference won’t address current monetary-policy issues, and will focus on academic research papers.

Lagarde Address

The event in Sintra is the ECB’s answer to the U.S. Federal Reserve’s annual monetary conference in Jackson Hole, Wyoming. Nobel Laureate Paul Krugman and Princeton University’s Markus Brunnermeier are among the delegates to address the getaway at Penha Longa, a resort that traces its origins back to a 14th century monastery.

IMF Managing Director Christine Lagarde delivered the opening address yesterday, and warned policy makers that a new range of instruments, known as macroprudential tools, to foster financial stability aren’t proven.

ECB Executive Board members Constancio, Peter Praet and Benoit Coeure will chair panel discussions today and tomorrow, which will include examinations of the role of such instruments in the central-bank repertoire. Draghi will wrap up with closing remarks tomorrow afternoon.

[Bloomberg]

ekathimerini.com , Monday May 26, 2014 (11:36)  
ECB holds rates, shifting focus to new purchase plans
Moscovici in charge of budgets seen prompting EU deficits debate
European stocks decline as investors await ECB policy meeting
Attica Bank said to have rejected notable offers
Six face prosecutor for bank robberies, terrorist activity
Six people detained in Athens and Thessaloniki on Wednesday in connection to bank robberies and possible terrorist activity faced a prosecutor on Thursday. The suspects, four Greek men, aged...
Explosive device found at Athens Stock Exchange building
An investigation by the Greek counter-terrorist unit was under way in Athens on Thursday after an envelope containing an explosive device was discovered in the mail room of the Athens Stock ...
Inside News
SOCCER
Rosenberg confident after win over Olympiakos
Malmoe captain Markus Rosenberg scored twice in the Swedes' 2-0 win over Olympiakos on Wednesday and illustrated his confidence in the team after the game. Rosenberg capitalized on slack def...
SOCCER
Rosenberg punishes Olympiakos´s errors at Malmoe
A disappointing Olympiakos got the worst possible result from its clash with Malmoe in Sweden for the Champions League, going down 2-0 on Wednesday due to its own defensive errors and attack...
Inside Sports
COMMENTARY
There´s money, still
The decision reached by Prime Minister Antonis Samaras and his deputy, Evangelos Venizelos, to seek a vote of confidence in Parliament on October 6, is a final attempt to restore order in th...
EDITORIAL
Confidence and corrections
The government must secure a vote of confidence in Parliament. Any other development would see the country enter very turbulent waters. Prime Minister Antonis Samaras and his cabinet must ag...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Rosenberg confident after win over Olympiakos
2. ECB holds rates, shifting focus to new purchase plans
3. Six face prosecutor for bank robberies, terrorist activity
4. Explosive device found at Athens Stock Exchange building
5. Kasidiaris-Kanelli hearing postponed to December 12
6. Pensioners stage rally in central Athens
more news
Today
This Week
1. Doctors, medical employees strike over staff shortages, wages
2. Court to hear Kasidiriaris-Kanelli case
3. Air travel to run smoothly after air traffic controllers' weekend strike deemed illegal
4. European stocks decline as investors await ECB policy meeting
5. Moscovici in charge of budgets seen prompting EU deficits debate
6. Pensioners stage rally in central Athens
Today
This Week
1. Greece may opt for unusual president to avoid snap polls, Venizelos says
2. Woman allegedly buried alive by accident in northern Greece
3. Salaries in Greece continue to slide, dipping 1.4 pct in Q2
4. Should you bet with Kissinger on where the world is heading?
5. Cypriots divided by 1974 war seek Shariah hub
6. The shocking thought of euro-dollar parity
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.