In his introductory statement delivered at the hearing before the Committee on Economic and Monetary Affairs of the European Parliament, European Central Bank (ECB) President Draghi repeated that they continue to stand ready to adjust all of their instruments if warranted by the inflation outlook.
The EUR/USD pair ignored Draghi's comments and was last seen trading at 1.0990, losing 0.25% on the day. Below are some additional takeaways, per Reuters.
"We need a coherent economic strategy in the euro area that complements and enhances the effectiveness of the monetary policy."
"Euro area growth momentum has slowed markedly, more than we had previously anticipated."
"This slowdown is mainly due to the weakness of international trade in an environment of persistent uncertainties related to protectionist policies and geopolitical factors."
"In view of the outlook and uncertainties we are facing, monetary policy needs to remain highly accommodative for a prolonged period of time."
"The longer the weakness in manufacturing persists, the greater the risks that other sectors of the economy will be affected by the slowdown."
"The new two-tier system will make sure that the ability of banks to extend loans to their customers at favourable terms remains unimpaired."
"Recent data and forward-looking indicators “ such as new export orders in manufacturing “ do not show convincing signs of a rebound in growth in the near future."
"Underlying inflation remains muted."
"A strong monetary policy response was essential."
"Governing council wants to be sure that the process of convergence is sufficiently mature and realistic before starting to lift policy rates."
"Enhanced guidance helps to reduce uncertainty about the expected path of interest rates in the short to medium term."
Source : FXstreet