QE speed ahead, word of Dragons – AGI

(AGI) – The European Central Bank will continue to implement the program of buying government bonds of the Eurozone until it is necessary , that is, until there will be no certainty of a return of inflation around the target of 2% on a sustainable basis.

He assured the President of the Eurotower, Mario Draghi , in a speech prepared for the visit to the IMF International.

These words have dispelled speculation that the ECB could reduce the amounts of quantitative easing in light of recent signs of improvement in the Eurozone.

Also yesterday, Draghi said that the non-standard measures adopted by the European Central Bank have proved effective and the low interest rates have not yet led to financial imbalances .

The unconventional actions have proven so far to be strong , more than as many observers had anticipated, “said the governor of the ECB, in a speech in Washington. “While a period of low interest rates will inevitably result in some misallocation of local resources, there should be consequences that may threaten global financial stability and there are, for now, signs of imbalances Financial under development “.

The ECB cut interest rates by reference to the record level of 0.05%, last September. To do so was based on a series of stimuli -standard, in order to revive the comatose economy dell’euroblocco.

Those responsible for European monetary policy, have provided banks with loans to fuel the supply of credit and started buying government bonds in March, urging governments to to advance structural reforms .

“The structural reforms that increase the confidence in the economic outlook and encouraging entrepreneurs to capitalize on financing conditions extremely loose today, make our policy proportionately much more powerful, “said Draghi still in his speech today in Washington, concluding that the desired reforms to individual governments, are essential to ensure policies the desired impact of the ECB .

It’s not all that glitters is gold, however. According to a number of the Central Institute, the measures taken by the ECB have driven down interest rates on loans to the real economy, but could also have the “side effects” .

According to Draghi, QE might also stimulate an increase in compensatory savings , in a society that tends to aging of the population, to make up for the low yields offered by savings, gradually you get closer to retirement age.

‘necessary- said – monitor closely the effects of QE on the distribution of wealth , so that “they have effects on consumption and investment,” stimulating.

“However – he pointed out – is interest of savers that production back to its potential without undue delay” for restart the crescit .