He's using his broom a lot today
It's win win for Draghi. Saying they are ignoring inflation keeps the euro soft on the continued easy policy, and if inflation does drop back then he's vindicated. If it keeps rising and does become sustained, he can then say ECB policy has worked.
The end game here is not to let the market get ahead of itself, which would lead to a huge squeeze in the Euro. He's delaying the inevitable but it's working.
The key question is about second round effects from inflation
Will look closely at second round effects from inflation, just as we did on the way down
Inflation outlook over next 1-2 quarters is higher than foreseen
The second round effects are key in assessing prices
Inflation divergencies will be manageable
EURUSD testing 1.0600.
Ze German press is firing off questions now.
The recovery of the Eurozone is in the interests of German citizens
