Draghi warned that it is too early to declare success - UOB

Analysts at UOB Group explained that the European Central Bank (ECB) President Mario Draghi’s speech in the Dutch Parliament said that it is still too soon to consider starting to wind down euro-area monetary stimulus, despite a “firming, broad-based upswing” in the economy. 

"He opined that the benefits of ECB’s policy clearly outweigh potential side effects. He explained that the ECB staff projections are conditional on the full implementation of all our monetary policy measures."

"While noting that downside risks have further diminished, Draghi nonetheless warned that it is too early to declare success and that maintaining the current very substantial degree of monetary accommodation is still needed. He also said that he does not currently see compelling evidence of overstretched asset valuations at the Euro area level."