Mario Draghi declared on Thursday the ambiguity surrounding the European Central Bank’s inflation outlook is 'receding,' working to give the euro a boost. The ECB president’s remarks came after the central bank’s September meeting, in which policymakers established their intentions to halt the extensive bond-buying programme at the end of this year. Despite patchy economic data released over the past couple of months, the ECB left its predictions for inflation from 2018 to 2020 constant from June at 1.7 percent.
Mr. Draghi’s assurance on price growth yielded a tailwind to the common currency, which was already rising on Thursday afternoon after the release of US data that showed consumer prices rose less rapidly in August than thought.
With the euro up 0.45 percent on the dollar to $1.1675. That increase exceeded the 0.28 percent rise for the UK’s pound. Mr. Draghi added that the eurozone had been going through 'growth above potential for some time'. He said labour market conditions were improving with. He said:
9.2m jobs being created in the euro area since 2013 and rising wages...We are confident that our present monetary policy stance is consistent with our - inflation - aim
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