Draghi: Long term inflation expt’s still 2% - Rabobank

By FXstreet.com | August 07, 2014 AAA

FXStreet (Guatemala) - Analysts at Rabobank drew attentions towards today’s ECB and press conference and in particular the inflation expectations.



Key Quotes:



“Draghi stroke a mild tone with regard to the latest inflation print (0.4% in July), arguing that the recent decline was mainly due to falling energy costs and had not really come as a surprise”.



“He also noted that core inflation had remained stuck at 0.8%, suggesting that the recent inflation numbers have not raised significant concerns among the Governing Council yet”.



“Draghi argued that long-term inflation expectations were still well-anchored, at levels close to 2 percent”.



“He admitted, though, that short-term expectations had come down in response to falling current inflation rates and that medium-term expectations (5-year ahead) are, roughly, in the middle (“close to 1%”). The SPF survey (to be released next week) will show "confirmation" of the ECB’s medium to long-term outlook with regard to inflation, he conceded (i.e., no significant shift in inflation expectation on the medium to longer term according to professional forecasters)”.



comments powered by Disqus
Related Forex Analysis
  1. AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation
    Forex News

    AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation

  2. USD/JPY bulls need to take a breath before a new attack at 110.00
    Forex News

    USD/JPY bulls need to take a breath before a new attack at 110.00

  3. Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low
    Forex News

    Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low

  4. GBP/USD nervous below 1.6200, waiting for data
    Forex News

    GBP/USD nervous below 1.6200, waiting for data

  5. Dollar’s Current Bull Leg Strongest since Rally Through Crisis
    Forex News

    Dollar’s Current Bull Leg Strongest since Rally Through Crisis

Trading Center