Euro zone economic slack may be bigger than thought: Draghi

By Kitco News / February 26, 2018 / www.kitco.com / Article Link

FRANKFURT, Feb 26 (Reuters) - Euro zone growth is robust but slack in the economy may be bigger than estimated, slowing the rise of inflation, European Central Bank President Mario Draghi said on Monday.

"Given the uncertainty surrounding the measurement of economic slack, the true amount may be larger than estimated, which could slow down the emergence of price pressures," Draghi told the European Parliament's committee on economic affairs.

"This is particularly visible in the labour market, where wage growth has remained subdued despite strong employment gains," he said. "Looking ahead, we anticipate that headline inflation will resume its gradual upward adjustment, supported by our monetary policy measures."


(Reporting by Balazs Koranyi; Editing by Catherine Evans)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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