ECB: in a perpetual state of readiness…

European Central Bank President Mario Draghi sent a strong signal Friday that the central bank is ready to “step up the pressure” and expand its asset-purchase programs if inflation fails to show signs of quickly returning to the ECB’s target.

“We will continue(!) to meet our responsibility—we will do what we must[“whatever it takes”, again?] to raise inflation and inflation expectations as fast as possible, as our price stability mandate requires of us,” Mr. Draghi said in a speech to a banking conference.

If(!) on its current trajectory our policy is not effective enough to achieve this, or further(!) risks to the inflation outlook materialize, we would step up the pressure and broaden even more the channels through which we intervene, by altering accordingly the size, pace and composition of our purchases,” Mr. Draghi said.

About the Author

Marcus Nunes
João Marcus Marinho Nunes is a partner of Phynance Estratégias Quantitativas e Investimentos and a professor of Economics at Fundação Getúlio Vargas in São Paulo, Brazil. He also blogs here: http://thefaintofheart.wordpress.com/

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