Mario Draghi said the improvement in euro-area inflation is on a self-sustained path as he struck a confident tone that the European Central Bank can withdraw its stimulus despite the rising specter of a global trade war
Source: Bloomberg – Addressing European Parliament lawmakers, the ECB president urged the region’s governments to lead by example by pushing back against creeping protectionism, which he singled out as the main risk for the area’s economic expansion. “We’re confident that basically thanks to our monetary policy the inflation rate will converge to our objectives,” Draghi said in Brussels on Monday. While uncertainties related to global factors “have become more prominent, the risks surrounding the euro area growth outlook remain broadly balanced.” Draghi’s bold tone comes just days after the U.S. slapped tariffs on billions of dollars of imports from China, which retaliated immediately. It echoes comments from Executive Board member Benoit Coeure, who said in a Bloomberg TV interview over the weekend that the ECB is alert to risks from trade tensions that are rapidly escalating, but its current monetary-policy stance is working well
To read the full article