Draghi Part I

ECB President Draghi essentially repeats his comments from last month. The key is that rates will remain at current levels or lower for an extended period and, although the economy is gradually recovering, growth risks remain on the downside. Price pressures of subdued and expectations are anchored.

The market has taken the euro to new lows for the week, just below $1.32, but trading is choppy. Implied Euribor yields have fallen, especially in the back months. European stocks are moving higher too.

In his prepared remarks, Draghi has not addressed the issue of releasing minutes and this may come out in the Q&A.

With the regional economy doing what the ECB forecast it means that a refi rate cut or fresh monetary initiatives are unlikely, or to say it a bit differently, the bar is high to additional easing.