The ECB president Trusts that Italy and Brussels will Reach a Deal. ECB President Mario Draghi is positive about the fact that the Italian government and the European Commission will obtain a deal. Furthermore, the central bank reports that the eurozone is developing slightly less than expected, but not enough to adjust the policy.
Draghi understands that higher interest rates in Italy can lead to problems.
If interest rates increase, borrowing also becomes more expensive, not only for companies but also for households.
Mainly, if interest rates rise, will be limited scope for improvement, mentioned the central bank president.
Draghi also states that economic growth in the eurozone is not as strong as anticipated. However, found no intention to vary from the current situation.
He describes the economic viewpoint “generally in balance.”
He demands core inflation to “gradually” reach the target of just under 2 percent.
Time is beginning to push for Brexit
There is no specific cause for minor economic growth.
Draghi suggests not just the Brexit but also the trade war between China and the United States and the unstable markets.
About Brexit, Draghi says that companies would do adequately to prepare for a hard Brexit.
Time is now beginning to rise, and the discussions are still not around.
Earlier, the ECB addressed that the interest rate is not altered.
Draghi requires interest rates to settle low until at least the summer of 2019.
The agenda is still that the buy-out plan will halt at the end of this year.