Draghi noted the G20 this weekend; key ECB headlines – Rabobank

By FXStreet FXStreet (Guatemala) – Analysts at Rabobank noted the day’s key event in the ECB and headline details there of.

Key Quotes:

“In his opening statement, Draghi said that “renewed downside risks have emerged to the outlook for growth and inflation”, but “owing to sharp fluctuations in financial and commodity markets, the Governing Council judged it premature to conclude on whether these developments could have a lasting impact […] or whether they should be considered to be mainly transitory.” That struggle was highlighted by Draghi’s comment in the Q&A that “the consequences of a lower price are positive, unambiguously, if there are no second round effects. When oil is lower because of demand effects, we also have to consider the impact of lower demand from emerging markets on the Eurozone.”

Draghi presented a significant downward revision to the growth projections to back up his dovish comments. Growth is now seen at 1.4% this year and 1.7% next year (very close to our own forecasts). This compares to 1.5% and 1.7% respectively in the previous forecast round. That the growth forecast for 2017 was also reduced by 0.2%-points (to 1.8%) may reflect the ECB’s concerns that the weakness in emerging markets is “unlikely to be …read more

Source:: FX Street