ECB chief was overinterpreted by markets: sources


Reuters/Francesco Canepa/06-28-17

European Central Bank President Mario Draghi intended to signal tolerance for a period of weaker inflation, not an imminent policy tightening, when his comments sent the euro higher this week, sources familiar with Draghi’s thinking said on Wednesday.

Draghi’s intention was to set up September as the earliest the bank would discuss rolling back stimulus, they said, but stressed it was by no means certain that it would come to a decision then.

“The market failed to take note of the caveats in Draghi’s speech,” one of the sources said.

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