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ECB's Draghi: the strong euro could require policy action

European Central Bank chief Mario Draghi said Saturday that the bank may need to take action to stem the rising euro. "The strengthening of the exchange rate would require monetary stimulus" as long as interest rates are already extremely low, he said. Draghi also said that the ECB "should not be complacent" about extremely low inflation, which many fear could stall Europe's economic rebound.

ECB's Draghi: the strong euro could require policy action

European Central Bank chief Mario Draghi said Saturday that the bank may need to take action to stem the rising euro. "The strengthening of the exchange rate would require monetary stimulus" as long as interest rates are already extremely low, he said. aue/pmh/sg

Draghi says a stronger euro would trigger looser ECB policy

By Jan Strupczewski and Krista Hughes WASHINGTON (Reuters) - The European Central Bank will ease monetary policy further if the euro keeps strengthening, President Mario Draghi said on Saturday as world finance chiefs ramped up pressure on Europe to ward off deflation. In the clearest signal yet the ECB was prepared to launch a stimulative asset-purchase program, Draghi said the euro's exchange rate had become increasingly important to policy and would act as a trigger.

ECB would need to go beyond ABS market for potential QE: Draghi

By Jan Strupczewski and Krista Hughes WASHINGTON (Reuters) - The European Central Bank could not rely solely on purchases of asset-backed securities (ABS) if it resorts to unconventional steps to boost inflation, given the limited supply of the securities, ECB President Mario Draghi said on Saturday. If the ECB starts injecting money into the economy using asset purchases, it is expected to choose a mix of government and private assets, including ABS, which collapsed during the financial crisis and are still recovering.

Big fear, no action shows ECB limits: James Saft

(James Saft is a Reuters columnist. The opinions expressed are his own) By James Saft (Reuters) - If Mario Draghi's biggest fear has come to pass and yet he does nothing, it follows that he may believe that there is little he can do. Or rather that the costs and risk of what he feels is within the ECB's ambit aren't yet worth the potential benefits. How else to reconcile the ECB's decision to stand pat on monetary policy with the following statement:

ECB 'resolute' to maintain easy money policy

The European Central Bank is determined to maintain eurozone easy-money policies and will take rapid action if needed, bank president Mario Draghi said on Thursday after the bank held rates low. The bank "remains resolute in our determination" to keep monetary conditions in the euro area accommodative and will "act swiftly" if necessary, Draghi said amid concerns about possible deflation. "We do not exclude further monetary easing," Draghi told a news conference after the ECB held its key interest rates steady at all-time lows for the fifth month in a row.

ECB to use all methods needed to fight prolonged low inflation: Draghi

FRANKFURT (Reuters) - The European Central Bank will use whatever unconventional measures it has available to ensure low inflation does not take hold for too long in the euro zone, ECB President Mario Draghi said on Thursday. "The (ECB's) Governing Council is unanimous in its commitment to using all unconventional instruments within its mandate in order to cope effectively with risks of a too prolonged period of low inflation," he told a news conference after the central bank kept its interest rates unchanged.

No sign consumers deferring purchases: ECB's Draghi

PARIS (Reuters) - The European Central bank does not see any signs that consumers are putting off spending in anticipation that prices will fall, which is a key symptom of deflation, ECB President Mario Draghi said on Tuesday. "Do we have any evidence that people are actually postponing their spending plans?" Draghi said at Sciences Po university in Paris. "We don't see any evidence of that." He added the ECB was carefully monitoring exchange rate developments because of their importance for price stability and economic growth.

Draghi comments on deflation send euro lower

The euro fell against the dollar Thursday, one day after hitting a 17-month high, following European Central Bank chief Mario Draghi's pledge to take action to fight deflation. At 2200 GMT the euro was at $1.3870, down from $1.3904 on Wednesday, when it had reached an intraday high of $1.3915, a level last seen in October 2012. The yen meanwhile gained ground, with the dollar slipping to 101.85 yen from 102.75, and the euro falling to 141.28 yen from 142.85 yen.

ECB ready to fight deflation, keeps close eye on euro: Draghi

VIENNA (Reuters) - The European Central Bank has been preparing additional policy steps to guard against deflation taking hold in the euro zone as the strong euro weighs on prices, ECB President Mario Draghi said on Thursday. The risks of deflation were "quite limited" at present, Draghi said in a speech at an award ceremony in Vienna, but the longer inflation remained low, the higher the probability of deflationary risks emerging.
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