Draghi says farewell and reiterates his call for more fiscal action
Following the announcement of bold policy action in September, there was no further policy change at President Draghi’s farewell meeting. Instead, the outgoing President defended his policy decisions and made clear that for further action the ball was now in the field of fiscal policy.
- At today’s meeting, the Governing Council unanimously decided to not change its policy stance while continuing to see risks on the downside and maintaining a dovish bias.
- Concerns about QE restrictions becoming binding in the new QE program were downplayed but no details about the composition were provided.
- In his farewell press conference President Draghi reiterated his call for stronger fiscal action and talked down the rift within the Governing Council.
- Looking ahead, we expect the ECB to stay on hold for the time being.
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CALL FOR MORE FISCAL