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April 15, 2015

Draghi Declared QE Success, Got Jumped by Protester


ECB decided to leave the interest rate unchanged.  Mario Draghi commented of his money printing at a press conference in Frankfurt on Wednesday morning:

".....There’s clear evidence that the monetary policy measures we’ve put in place are effective.....We expect the economic recovery to broaden and strengthen gradually.”

Guess his remark just rubbed some people the wrong way. His victory speech was abruptly interrupted when a protester jumped on to the table where he was sitting (see video).  Bloomberg reported Draghi was uninjured and resumed speaking shortly after.



Draghi also reaffirm further QE by saying
“I’m quite surprised frankly by the attention that the possible early exit of the program receives....” 
He noted the current program will continue until September 2016 or until a “sustained adjustment” in inflation is seen. EUR/USD did not register too much movement after Draghi's remark.

So far, March Consumer Prices dropped an annual 0.1%, compared with 0.3% decline in February suggesting deflationary pressures are easing.  But eventually, ECB (as well as the Fed and other central banks) will have to deal with inflation from QE Infinity.  On this, Draghi said,
The ECB intends to look “through unexpected outcomes in measured inflation in either direction if judged to be transient and to have no implication for the medium-term outlook for price stability.”
In other words, cooking and fixing the stats such as stripping out energy prices.  What a world by central bankers we now live in.  

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