ECB's Draghi Says No Need To Deviate From Policy Guidance

(RTTNews) - The unwarranted side-effects from the unconventional monetary policy have so far remained limited and hence, there was no need to change the policy path currently being projected, European Central Bank President Mario Draghi said Wednesday.

"When we introduced unconventional policy instruments in order to secure a return of inflation towards our objective, we were aware that those new instruments could result in somewhat more pronounced side effects than conventional instruments," Draghi said in a speech in Madrid. "These side effects have remained contained."

Draghi noted that asset purchases are inevitably more difficult to calibrate in the euro area that is composed of several national financial markets. They are more complex to implement, and more likely to produce side-effects than other instruments, including moderately negative rates, he added.

"Negative rates may also have unwarranted side-effects, but those have so far remained limited," Draghi said.

"Our current assessment of the side effects suggest therefore that there is no reason to deviate from the indications we have been consistently providing in the introductory statement to our press conferences."