Draghi likely to provide clues on how the eurozone will look after his term ends
Frankfurt — When European Central Bank (ECB) president Mario Draghi speaks on Thursday, a key element will be what the eurozone economy might look like after his term ends. Draghi will cap the ECB’s final policy meeting of the year with a press conference where he will unveil updated economic projections that include the first estimates for 2020, shortly after he steps down. Investors will latch onto the outlook as a clue as to when policy makers might end their emergency stimulus measures. Banks, including Berenberg, UBS Group and Société Générale, predict economic-growth forecasts will be raised and the 2020 inflation outlook will be close to the ECB’s goal of just less than 2%. That could allow policy makers to halt bond purchases in late 2018 before raising interest rates about six months later. "Draghi would feel more comfortable as a central banker with some kind of normalisation process having started before he leaves," said Société Générale economist Anatoli Annenkov. "This ...
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