Vespasianus
Princeps thermarum
Even with the scheduled end of the 1.7 trillion-euro ($1.9 trillion) plan just six months away, Draghi said policy makers meeting in Frankfurt haven’t yet discussed what they’ll do when that day comes. If a new laissez-faire tone is creeping in to replace years of hyperactivity, it may be a signal that the division of labor between central banks and governments in providing economic support is shifting.
“Draghi doesn’t sound like a central banker who’s in any hurry to ease further,” said Tim Graf, head of European macro strategy at State Street in London. His stance “fits in with the G-20 statements about using all actors to support growth, including the fiscal side. Taking ever-easier monetary policy for granted is becoming less valid.”
As a communications tack, Draghi’s performance after the Governing Council met to set euro-area monetary policy is comparable with the attitude a day earlier by Mark Carney. The Bank of England governor told lawmakers that his institution’s rapid response after the U.K. voted to quit the European Union probably staved off a recession, but also said the BOE isn’t “trigger-happy.”
Draghi Dialing Down the Drama May Mark Wane of Monetary Activism
“Draghi doesn’t sound like a central banker who’s in any hurry to ease further,” said Tim Graf, head of European macro strategy at State Street in London. His stance “fits in with the G-20 statements about using all actors to support growth, including the fiscal side. Taking ever-easier monetary policy for granted is becoming less valid.”
As a communications tack, Draghi’s performance after the Governing Council met to set euro-area monetary policy is comparable with the attitude a day earlier by Mark Carney. The Bank of England governor told lawmakers that his institution’s rapid response after the U.K. voted to quit the European Union probably staved off a recession, but also said the BOE isn’t “trigger-happy.”
Draghi Dialing Down the Drama May Mark Wane of Monetary Activism
