Mario Draghi

The paradox of the ECB long-term refinancing operations

ECB’s programme is here to stay

There was a consensus in the market that the ECB will announce an extension of its current asset-purchase programme  and so president Mario Draghi did it by expanding QE more than expected to December 2017. He also committed to do it even longer if needed.”The presence of the ECB on markets will be there for a long time,” he explained.

Resilience? Not Yet

Francesco Saraceno | Last week the ECB published its Annual Report, that not surprisingly tells us that everything is fine. Quantitative easing is working just fine (this is why on March 10 the ECB took out the atomic bomb), confidence is resuming, and the recovery is under way. In other words, apparently, an official self congratulatory EU document with little interest but for the data it collects.

Super Mario’s limited powers

Mario Draghi surprised the markets with a bold move no one expected. That said, he openly conceded his margin for manoeuvre was running out. In a sincere confession few central bankers would indulge in, Draghi acknowledged there was little room for ECB’s extra rate cuts.

The ECB Will Prefer To Be Safe Rather Than Sorry

The ECB’s main priority will be to fuel confidence in the financial markets and inflation will be its alibi for this. In February, eurozone CPI receded to -0.2% year-on-year and, in the short term, the region should be prepared for negative rates to continue.

ECB's language change

Draghi Wants The Cake, And Eat It

Francesco Saraceno | Yesterday Mario Draghi has called once more for other policies to support the ECB titanic (and so far vain) effort to lift the eurozone economy out of its state of semi-permanent stagnation. I just have two very quick (related) comments.

The Communications “Conundrum”

Does central banks’ “communication” matter? Some analysts believe it does. Therefore, Draghi may now have to work to repair his reputation as “Super Mario”.