ECB’s Draghi sees inflation headwinds from euro volatility

FRANKFURT (Reuters) – The European Central Bank is increasingly confident that it will lift inflation back to its target but also faces new obstacles from currency market volatility, ECB President Mario Draghi told the European Parliament on Monday.

“New headwinds have arisen from the recent volatility in the exchange rate, whose implications for the medium-term outlook for price stability require close monitoring,” Draghi said in Strasbourg in a speech that is largely consistent with the bank’s last policy message.

The ECB left its ultra easy policy unchanged last month, warning that inflation remains muted and may take several more years before it rose back to the bank’s target of almost 2 percent.

Still, with the euro zone economy motoring ahead and unemployment falling rapidly, the ECB is expected to end its more than three-year, 2.55 trillion euro ($3.17 trillion) bond purchase program later this year, taking a step back from unconventional stimulus.

($1 = 0.8055 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.