In ECB annual report published today, President Mario Draghi maintained that “substantial monetary policy stimulus remains essential to ensure the continued build-up of domestic price pressures over the medium term”. Also,”In view of the persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets, the conduct of monetary policy in the euro area will continue to require patience, prudence and persistence.”
In presenting the report, Vice President Luis de Guindos warned that “the effect of the adverse factors weighing on growth is expected to unwind over time.” And, “weaker growth momentum will leave its mark on domestic price pressures, slowing the adjustment of inflation towards our aim”.
