Draghi: Euro zone will not surrender to low inflation

FXStreet - ECB chief Mario Draghi in his speech in Germany says that he sees no reason for permanently lower inflation. He also stressed that ECB will not surrender to low inflationary pressures. He however did acknowledge that “There are forces in the global economy today that are conspiring to hold inflation down. Those forces might cause inflation to return more slowly to our objective.”

Pointing that monetary policy cannot be “relaxed about aeries of supply shocks” he said that the central bank will “act within” the mandate to fulfill its objective of returning inflation to target as soon as possible.