ECB's Draghi: Moderate economic recovery is proceeding, continues to expect prolonged period of low inflation, expects to see gradual upward move in inflation - Prepared remarks
- Inflation expectations remain well anchored, based on subdued medium-term inflation outlook.
- Determined to maintain high degree of accommodation, can act swiftly if necessary.
- Reiterates ECB is prepared to use unconventional tools within its mandate if necessary.
- Looking ahead, further improvements in domestic demand should materialize.
- Geopolitical risk could negatively effect economic expectations.
- Low inflation reflects lower food, services and good prices.
- Inflation should pick up in April thanks to Easter expenditures.
- Risks to inflation outlook are broadly balanced over the medium term.
- Annual HICP should remain low in coming months before gradually rising in 2015, should hit level near 2% by end 2016.
- Subdued loan dynamics reflect the current stage of the business cycle and balance sheet adjustments.
- Eurozone credit market fragmentation must be further reduced.