The ECB signals the eurozone economy is not quite strong enough yet
Frankfurt — European Central Bank (ECB) president Mario Draghi stopped short of declaring the ECB will meet its inflation goal in 2020, signalling that the eurozone economy is not yet strong enough to warrant weaning off monetary stimulus. Draghi unveiled updated economic projections that showed stronger growth over the next three years but only slowly improving consumer-price gains. Inflation will average 1.7% in 2020, below the goal of just less than 2%. Policy makers earlier kept interest rates and their quantitative-easing settings unchanged. The governing council’s discussion "reflected the increasing confidence that we have in the convergence of inflation towards a self-sustained path in the medium term," Draghi said in a press conference on Thursday, adding that an "ample degree" of stimulus is still needed. "Domestic price pressures remain muted overall and have yet to show convincing signs of a sustained upward trend." The ECB chief’s caution comes amid a spate of central b...
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