ECB or solid agreement with Greece – EXAME.com

 Frankfurt – The European Central Bank ( ECB ) called on Wednesday that the Greece completes a solid agreement with your creditors and promised to continue to support the euro zone with the massive purchase debt without slowing down.

 

 “The board of governors of the ECB wants to keep Greece in the euro zone,” he reiterated the ECB president, Mario Draghi, in a press conference in Frankfurt at the end of the meeting, which kept interest rates at their historically low level 0.05%, in force since September last year.

 

 The Italian, who participates in efforts made in recent days to reach an agreement between the Greek government of Alexis Tsipras and the ECB trio, International Monetary Fund (IMF) and the European Commission, was literally bombarded by questions from journalists on the subject.

 

 Draghi said there common will and strong determination to find a solution, but the guardian of the euro advocated a “solid agreement” and maintained the hard line with Athens.

 

 The ECB is refusing to increase the ceiling of issuance of Treasury bonds imposed on Greece while negotiations are not completed.

 

  “firm Trajectory”

 

 In turn, the president of the Central Bank is committed to continue injecting liquidity in the financial circuit mountains eurozone to drive down interest rates and thus stimulate the economy and inflation.

 

 To stimulate the dynamics of prices, the ECB buys since early March private and public debt with the quantitative expansion program, the “QE”. By the end of September 2016 intends to inject this way 1.1 trillion euros.

 

 The ECB bought around 240 billion euros in bonds and this promising start has fueled speculation about an early suspension, which Draghi just denied.

 

 “If necessary, we will review the size, timing and program modalities, but so far we see no reason to do it,” Draghi said, for whom the latest indicators on the situation confirms the need to keep “a steady path of monetary policy “.

 

 Debt purchases begin to have effects on the real economy thanks to improved financing conditions. The ECB bet on an acceleration of the current economic recovery in the euro zone.

 

 But the ECB is still “really far” to contemplate the end of the program, including on a hypothetical downturn, Draghi noted.

 

  increased volatility

 

 For Draghi, “there is still much to do” before inflation is close to the 2% target in the region. In May, inflation in the eurozone was 0.3% per year. For 2015, the institution provides an increase of 0.3% price, according to statistics released on Wednesday.

 

 Draghi reiterated that the ECB expects to continue buying debt until at least September 2016, and that “full compliance” of your plan will become reality its macroeconomic projections, with inflation at 1.8% in 2017.

 

 European monetary institution does not exclude possible turbulence in financial markets.

 

 “We will have to get used to increased volatility periods,” Draghi foresees.

 

 It also reiterated its call on European governments to make structural reforms of their economies, the only way, he said, to ensure the effectiveness of their own efforts.

       

Topics: ECB , Europe , Greece , Greek Crisis , Piigs , Euro Zone