23 Mar 2015
Growth is gaining momentum – ECB’s Draghi
FXStreet (Mumbai) - The European Central Bank President, Mario Draghi, in his testimony before the European Parliament’s Economic and Monetary Affairs committee, said that the growth is gaining momentum in the Eurozone.
The momentum is mainly driven by a fall in oil prices, firming of external demand, easy financing conditions due to loose monetary policies, and due to depreciation of the Euro. Draghi said the upbeat economic view is clear from the ECB projections, which were visibly revised upwards.
On Inflation, the President said it is expected to remain low or negative in the months ahead. However, inflation expected to start rising by year end, due to higher aggregate demand, lower Euro and recovery of oil prices.
Draghi also said that the central bank sees an ample supplies of bonds, squashing fears of availability of bonds for its monthly EUR 60 billion QE program.
The momentum is mainly driven by a fall in oil prices, firming of external demand, easy financing conditions due to loose monetary policies, and due to depreciation of the Euro. Draghi said the upbeat economic view is clear from the ECB projections, which were visibly revised upwards.
On Inflation, the President said it is expected to remain low or negative in the months ahead. However, inflation expected to start rising by year end, due to higher aggregate demand, lower Euro and recovery of oil prices.
Draghi also said that the central bank sees an ample supplies of bonds, squashing fears of availability of bonds for its monthly EUR 60 billion QE program.