With rates left unchanged – deep in NIRP-land – amid an increasingly fragile banking system (see Italian bank stocks), we expect ECB chief Mario Draghi to reassure an anxious public how well QE is working (despite weak growth and tumbling PMIs), how great negative rates are for stimulating ‘something’ despite inflation’s drift lower, and how his about-to-be-launched corporate bond buying bonanza will really solve the problems of the world (by enabling firms to lever up even more and buyback more stock?).

Started Early:

  • DRAGHI SAYS RATES TO STAY LOW WELL BEYOND QE HORIZON
  • DRAGHI: ASSET BUYS TO RUN TO MARCH 2017 OR BEYOND IF NEEDED
  • DRAGHI: EXPECT RATES AT CURRENT, LOWER LEVELS FOR EXTENDED PERIOD
  • DRAGHI: EXPECT RECOVERY TO PROCEED AT MODERATE BUT STEADY PACE
  • DRAGHI:GROWTH STILL SUPPORTED BY DOMESTIC DEMAND; EXPORTS WEAK
  • DRAGHI: IF WARRANTED, WILL USE ALL TOOLS AVAILABLE IN MANDATE
  • DRAGHI: TO CLOSELY MONITOR PRICE STABILITY OUTLOOK
  • DRAGHI: EXPECT ADDL STIMULUS FROM MEASURES NOT YET IMPLEMENTED

The ECB cuts long-term growth forecasts, while expecting more growth early:

  • DRAGHI SAYS 2Q GROWTH MAY BE SLOWER THAN 1Q
  • DRAGHI: RISKS TO GROWTH OUTLOOK STILL ON DOWNSIDE
  • ECB STAFF SEE 2018 EUROZONE GDP AT 1.7% V MAR 1.8%
  • ECB STAFF SEE 2017 EUROZONE GDP AT 1.7% V MAR 1.7%
  • ECB STAFF SEE 2016 EUROZONE GDP AT 1.6% V MAR 1.4%

The ECB increases its inflation forecast modestly on the short end:

  • ECB STAFF SEE 2016 EUROZONE HICP AT 0.2% V MAR 0.1%
  • ECB STAFF SEE 2017 EUROZONE HICP AT 1.3% V MAR 1.3%
  • ECB STAFF SEE 2018 EUROZONE HICP AT 1.6% V MAR 1.6%

His summary:

  • DRAGHI: CROSS-CHECK CONFIRMS NEED TO PRESERVE ACCOMMODATION
  • DRAGHI: MONPOL FOCUSED ON MEDIUM-TERM PRICE STABILITY

Live Feed:

The post Mario Draghi Explains Why ‘Buying Corporate Bonds As Well’ Will Work This Time – ECB Press Conference Live Feed appeared first on crude-oil.top.