The European Central Bank will not tighten policy to counter surging inflation as the rise is temporary and due almost entirely to rising oil prices, ECB President Mario Draghi said on Monday, brushing aside calls for the ECB to reduce stimulus.
Mario Draghi took the Trump administration to task, addressing recent assertions that Germany is a currency manipulator and warning against the rollback of post-crisis financial regulation.
Britain’s economy has held up much better so far to a Brexit vote than many forecasters expected. Fears over the impact prompted the bank to cut rates for the first time in more than seven years and expand its economic stimulus program in August.
The ECB caught financial markets off-guard by announcing it would trim asset buys from April next year, even as it reserved the right to increase purchases again if the euro zone’s recovery faltered.