Draghi Drags On
Yesterday, Mario Draghi spoke and people could scarcely believe what he said as he completely opened up and detailed exactly how he was going to drag the Eurozone out of the clutches of deflation and what measures needed to be taken.
Of course, that didn’t actually happen.
It was the same old story, with Draghi being his normal cautious self, implying that they were not overly worried about deflation but – if it did surface – then there could be some broad-based asset purchases, the details of which were never going to be explained…
Similarly, the strong Euro was mentioned as being a bad thing and a threat to the economic recovery and the European Central Bank (ECB) are very much against any further strengthening. The markets are taking this to mean we’re going to have more of this ‘non-posturing’ in the future and will probably carry on doing not a great deal in the near future.
Focus today in the UK is on the Retail Sales data which has taken on greater importance recently as an indication of economic health and potential future monetary policy since Mark Carney took over. Increasing retail sales show that people’s hopes for employment, wage growth and economic growth are such that they are happy to spend money in the short term without worrying too much about the long term.
Anyway, have a good weekend one and all!
Image: © Skley / photopin