Wednesday, April 4, 2012

ECB's Draghi: Exit strategy talk is premature

ECB President Mario Draghi said today that the euro zone inflation outlook did not warrant a retreat from loose monetary policy given the poor state of the bloc's economy.

"There are inflationary pressures coming from higher oil price, higher indirect taxes in the short term, but inflation expectations are firmly anchored in the medium term," he told a news conference.

"Given the present conditions of output and unemployment, which is at historical high, any exit strategy talking for the time being is premature."

He said he was not stepping up his "rhetoric" on inflation, meaning that he sees it as ultimately controllable.