A slip in stock markets this year has not materially impacted euro zone pecuniary conditions, European Central Bank President Mario Draghi maintained on Monday, suggesting that policymakers remain calm about the brand-new market volatility.
Draghi added that euro zone inflation devise continue to rise towards the bank’s target of almost 2 percent but uncertainty terminated the degree of slack in the economy requires patience.
“While we remain courageous that inflation will converge towards our aim over the medium term, there are until now uncertainties about the degree of slack in the economy,” Draghi said in the ECB’s annual narrate.
“A patient, persistent and prudent monetary policy therefore remains obligatory to ensure that inflation will return to our objective,” he added.
Commenting on inventory markets, the Draghi said that markets were already defenceless to an abrupt repricing of risk but the impact of the volatility is so far minor.
“These hazards materialised in global equity markets in early 2018, although to meeting without significant spillovers to euro area credit markets and in the future broader financial conditions.”
Major euro zone shares are down 2.7 percent this year while bank staples, a crucial indicator for the ECB, are down 3.1 percent.