European Central Bank President Mario Draghi said on Friday that inflation expectations remain well anchored and there is no inflation risk in any euro area country.
"Should risks to price stability emerge, the Eurosystem has sufficient tools at its disposal to absorb excess liquidity," Draghi said in a speech at the 14th ECB Watchers Conference in Frankfurt.
"Price stability will remain a cornerstone of economic and monetary union," he added.
Political choices are dominating the monetary policy, Draghi told the conference. The Eurosystem will continue to supply liquidity to solvent banks where needed, he reiterated.
He also noted that the objectives of the ECB's three-year long term financing operations or LTROs have been 'broadly met'. Citing evidence from the April bank lending survey, Draghi said supply side constraints on bank credit have been removed.
"The full supportive impact of the three-year LTROs needs time to unfold," the central bank chief said.
"In the current environment of very weak credit demand and heightened risk aversion, a rebound in the volume of credit will be particularly slow."
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.