Draghi’s speech: Slowdown has raised questions about strength of growth outlook
The European Central Bank (ECB) President Draghi is on the wires now, via Reuters, delivering the keynote speech at the Frankfurt European Banking Congress.
Key Headlines:
The slowdown has raised questions about the strength of growth outlook.
Recently seen a loss in growth momentum.
But expects economic expansion to continue in the coming years.
Forward guidance has been effective in anchoring expectations about the future path of interest rates.
If conditions should tighten or if inflation outlook deteriorates, it would be reflected in an adjustment in the expected path of future interest rates.
Witnessing a long-term slowdown in world trade.
Anticipates that QE will come to an end in December.
Still sees overall risks to the growth outlook as broadly balanced.
Wage growth should be resilient to a period of slower growth.
Pass-through of wage growth to prices remains relatively muted.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
