Speaking at the Monetary Affairs Committee in Brussels ECB President Mario Draghi said yesterday that the European Central Bank is becoming more confident that inflation will rise back to its target but the euro zone still requires substantial stimulus.
The medium term outlook is also clouded by uncertainty as the recent volatility in exchange rates had made the inflationary picture particularly hard to read, Draghi said in a speech that was consistent with the bank’s September policy statement.
Overall, we are becoming more confident that inflation will eventually head to levels in line with our inflation aim, but we also know that a very substantial degree of monetary accommodation is still needed for the upward inflation path to materialise,” Draghi said.
Chancellor Philip Hammond has raised further doubts about Theresa May’s future after failing to support her plans to fight the next election as Conservative leader, describing her prospects post-Brexit as “not an issue for today”.
When asked repeatedly whether he believed May should lead the party into the next election, Hammond insisted the issue was separate from the immediate question of leading the UK through the Brexit talks.
15:00 – USD – CB Consumer Confidence
17:45 – USD – Fed Chair Yellen Speaks