UPDATE (17.30 FRANKFURT) I now have the official English version, according to which Mr Draghi said the ECB ”is preventing, with its use of non-standard measures, the malfunctioning of the money and financial markets from obstructing the monetary transmission mechansism”. In that context, he mentioned bank liquidity support – but not bond buying. He added “All the non-standard measures adopted in response to the financial strains are, by their nature, temporary”. Sounds as if it was scripted by the ECB in Frankfurt.
Mario Draghi has his own way of promoting central bank opaqueness: speaking in Italian. I suppose that’s allowed when in Rome – where he spoke this morning - but it does not help understanding of his thinking ahead of his move to Frankfurt next week to become European Central Bank president.
The news agencies have picked up his commitment to continuing the ECB’s “non-standard” measures. “The Eurosystem is determined, with its non-conventional measures to prevent malfunctioning in the money and financial markets creating an obstacle to monetary transmission,” Reuters quotes him as saying, and suggests this was a signal that he will continue the ECB’s controversial government bond buying programme. Maybe, but pending the arrival of an English text, I am not so sure. Read more