Release rate decision by the ECB President Mario Draghi (Mario Draghi) immediately held a press conference, market participants, there are some doubts and answers on the following questions:
Draghi pointed out that the parties are indeed different opinions on this issue, but in fact, in many countries paid a huge sacrifice for the austerity of the euro-zone countries is causing too many negative results, whether it should be reined in, indeed begun to harvest some of the fruits, therefore, now halfway and come to naught in the austerity measures unnecessarily. He pointed out that, in any case, the crunch is inevitable.
Mario Draghi also said that some of the provisions of of Basel (c) agreement in the recent changes made to hold a recognized attitude that the parties previously for some of the measures taken by the Agreement, is basically taking into account all aspects of the Hip real situation .
For the problem of unemployment, Draghi pointed out that the unemployment rate is an important consideration for monetary policy measures taken by the European Central Bank. Next, the European Central Bank will do further analysis of the distinction between cyclical and structural unemployment. He also pointed out that the degree of mobility of the eurozone unemployment is very low, and thus to improve the unemployment situation through monetary policy and can not play much effect.
Draghi also pointed out that, from the point of view of monetary and financial stability, the euro area is gradually returning to normal, but the overall speed of recovery is still slow, therefore, the European Central Bank will continue to pay close attention to the situation of many weak links in the euro area financial system, take timely remedial measures to prepare for the eventuality in the future.
In addition, Draghi said the ECB will not consider the removal of the unconventional rescue measures, but in the economic conditions permit, these measures will indeed be gradually be lifted. However, the premise of the removal of the unconventional measures in addition to the financial markets to stabilize first, there must be fit enough for a full economic recovery, while the European Central Bank is expected that a full economic recovery until at least the second half of 2013 can be achieved.
Draghi pointed out, the present, the euro area real economy status earlier in December last year, when compared to the European Central Bank to make the judgment did not undergoing any change, so no reason to modify the medium-term price stability target, thus, All members of the European Central Bank agreed to maintain existing monetary policy unchanged, that is, something in the inevitable. He pointed out that the central bank members agree, meaning that in fact no one has raised the rate cut move.
In addition, market conditions, Draghi pointed out various peripheral countries of the euro area bond yields and sovereign credit default swaps (CDS) prices are in decline, at the same time, the European stock markets continued to rise, while the level of market volatility was at historic lows, these conditions are a marked improvement compared to last September. At the same time, a large number of international investment funds to enter the European market also has reflux.
Draghi stressed at the same time, continue to carry out the reform measures designed to strengthen competition and improve the competitiveness of the market is still quite necessary, at the same time, try to take measures to improve the employment market status is imperative. Once the reform is complete, expected to strengthen the growth potential of the euro area economy as a whole, and at the same time to improve the employment situation.
And he said, in order to ensure that the ECB's monetary policy measures can be effectively transmitted to the financial markets, strengthening the banking license audit current imperatives. Banks to maintain a good balance sheet, will ensure the economic field to lose speed enough credit liquidity, and the status of the various financing channels gradually returning to normal.
At the same time, he pointed out, Europe parties has taken a solid step in the further integration of the financial system, the banking industry alliance the final shape will not an issue. Future single banking regulatory mechanism, is an important part of the banking industry alliance system, and further integration of the banking system has a decisive significance.
Draghi also admitted that the outlook for the euro-zone economy is still facing considerable risks, major risk factors, including the slow structural reform measures in place, the economic imbalance between the global geo-political crisis, as well as industrialized countries. Thus affect the time for confidence longer than expected, and the prospects for recovery in private investment, employment and consumption continue stagnant.
He thus promised, downturn in economic growth in the euro zone will still continue to follow the situation in the entire 2013. The uncertainty of the balance scale adjustment process in the financial and non-financial sector in the economic field, as well as internal its external news of the situation, will the economic activities remain under pressure situation, but in late 2013, the level of economic activity is expected to gradually picked up.
Draghi concluded that the euro zone continued to drop in the past few months to reconcile the inflation rate (HICP), the situation is basically in line with expectations, and this year, the inflation rate may eventually drop to less than 2% of the control objectives, Thus, the policy level, the inflation pressure is still limited.
No comments:
Post a Comment