"Wednesday's press conference will be a tightrope walk for Draghi"
The ECB Governing Council will meet this Wednesday, one month after kicking off its disputed large scale bond buying program aimed at pushing up inflation near its goal of close to but below two percent. ECB Executive Board member Yves Mersch said last week the central bank would be free to trim the program if inflation in the eurozone picked up faster than expected. “It will be interesting to see if ECB President Mario Draghi will comment on a possible smaller size or premature end of the program,” cep economist Bert Van Roosebeke said. Wednesday’s press conference will be a tightrope walk for Draghi, Van Roosebeke reckoned: “On the one hand, he will be keen to avoid driving up yields of sovereign bonds of southern European states by making any critical remarks on the purchasing program. On the other hand, he also does not have any interest in a de-anchoring of inflation expectations.”