The ECB is ready to give more stimulus to hit inflation targets if needed, but feels the continent is right on track, said President Mario Draghi.
Martin Janickio, an economist at Moody’s Analytics Prague, summed up the Draghi conference:
Draghi Pleased With Himself. Amid positive signs in the euro zone, ECB bond-buying will continue #ecb #draghi http://t.co/cPtxy9yYsj
— The Dismal Scientist (@dismalscientist) June 3, 2015
Last month eurozone inflation hit 0.3%. While it was the first rise in six months, it still has a long way to go before hitting the ECB target of 2%. ECB economists are predicting inflation will touch only 1.5% in 2016 and 1.8% in 2017. The Wall Street Journal reports:
“The full implementation of all our monetary policy measures will provide the necessary support to the euro area’s economy,” said Draghi. He stressed that policy makers would have to be convinced that inflation will remain at its target level before halting their bond purchases, and wouldn’t be content with one or two months in which the inflation rate was close to 2%.
“Recovery is on track,” says Draghi, but the numbers are disappointing still. Continued struggles with Greece have cast a pall over the ECB.
Photo: INSM via Flickr.