ECB's Draghi: Decisions on QE in Oct, volatility in FX rate a source of uncertainty

Following its meeting on Thursday, the Governing Council of the ECB decided to keep the policy and the deposit rate at record lows and reiterated that asset purchases would continue at 60 billion euros per month at least until December. After the bank released its statement, Mario Draghi, President of the ECB, gave his remarks at the press conference and responded to questions from the press, providing the following key headlines:

• Bulk of decisions probably in October
• Recent volatility in FX rate a source of uncertainty
• Confident that inflation will head towards inflation aim
• This autumn will decide on calibration of policy beyond this year
• Downside risks also related to FX
• CPI likely to decline toward the turn of the year
• FX appreciation caused CPI projection cut
• Euro FX rate appreciation tightened financial conditions
• By 2020 inflation is expected to hit target