Main points:
- EM, euro and oil are risks
- Macroeconomic outlook is challenging
- Inflation close to zero
- Forecasts show slower increase in inflation
- ECB won’t hesitate to act if needed
A dovish speech from Draghi as usual.
- QE has sufficient “in-built flexibility”
- ECB can alter size, composition and duration of the QE
- No financial stability risk at this time
- Euro area must boost scope fro cross-border private risk sharing
