The ECB conference today went over a few key points, such as forecasts for growth, inflation, deposit rates and interest rates. Draghi said that the Eurozone has demonstrated improvement through economic and survey data, but says that monetary policy will continue to aid the recovery in whatever way possible. Areas of improvement were improving exports, inflation, lower oil prices and the wealth effect from recent stock market gains. Draghi said that based on the past month's data, further action is not required. He also hinted at the idea that other memebers of the ECB were unhappy with the decision to leave the rates as they are, but wouldn't elucidate on that.
The ECB talked about the possibility of introducing negative rates on deposits, implying that the ECB is "ready to take action if subsequent economic data signal its needed or credit markets remain dysfunctional" says Annalisa Piazza, economist at Newedge in London. Other topics of conversation during the meeting were long-term refinancing operations, asset-backed securities, collaterals and credit claims.
Draghi spoke about the successes of the OMT (Outright Monetary Transactions) as well. Although they have been used sparingly by member governments, the OMT is regarded as one of the most successful programs in recent financial history. It was credited with restoring calm and order to the Eurozone bond market, while removing fears about tail risk.
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