“The objective here would not be to defend the current stance, but rather to increase meaningfully the degree of monetary accommodation,” the ECB president Mario Draghi said at the Conference De Nederlandsche Bank 200 years: Central banking in the next two decades, in Amsterdam on Thursday.
“While inflation will remain low for a prolonged period, we see it gradually rising back to 2 percent,” Draghi said today. “The delay is largely explained by the impairments in the transmission mechanism that lengthen the lag between our accommodative policy stance and price developments.”
Any asset-purchase program “should certainly take into account the heterogeneity, the fragmentation let’s call it, of our euro-area system, if that is relevant for the effectiveness of the purchase program.”
*Check Mr. Draghi’s original speech here.