Draghi Confirms Ultra-Easy Forward Guidance

In his prepared remarks today at the press conference following the latest meeting of the ECB’s Governing Council, ECB President Mario Draghi said, “Looking ahead, our monetary policy stance will remain accommodative for as long as necessary.” This statement confirmed July’s forward guidance. He said that the six-quarter recession in the euro area may be coming to an end based on the latest surveys of economic activity. He attributed this improvement in the real economy to the stabilization in financial markets since last summer. Nevertheless, the risks remain on the downside, as lending conditions remain tight.