European Central Bank President Mario Draghi just told the Economic Club of New York: "Thanks to our monetary policy actions, the risk of deflation in the euro area is firmly off the table."
The ECB plans to extend its $65.3 billion bond buying program through March 2017. The central bank's deposit rate is – 0.3%.
Draghi expressed confidence that the ECB will eventually meet its inflation target of just under 2%.
But after unprecedented stimulus, the Eurozone's October inflation rate was a mere 0.1%.
Even so, Draghi says the ECB's policy is on track. Read this excerpt from a Dec. 4 CNBC article:
The ECB's easy policy is having its "intended" effects, and the bank sees "no particular limit" to how it can use tools, Draghi said. He added that the central bank would "no doubt" intensify policy like its quantitative easing program, if needed.
"QE is there to stay. If needed, it could be recalibrated," Draghi said in response to a question after the speech. ...
He noted that measures of wage growth remain "well below their historical averages." He cited a "great deal of slack" in the labor market despite improvements since the 2013 unemployment peak.
Draghi noted that the ECB cannot do "everything" to meet its goals, and countries may need to implement other structural reforms.
You can read the entire article by clicking on the link below:http://www.cnbc.com/2015/12/04/ecb-pres-draghi-risk-of-deflation-firmly-off-the-table-thanks-to-policies.html