Mario Draghi has announced the monetary policy tightening - 25.4.2012

Speaking at the meeting of the Committee on Economic Affairs of the European Parliament on Wednesday, the ECB chairman - Mario Draghi suggested that high growth in money supply and lending should not be expected in the near future. According to the chairman’s speech, inflation will stay above 2% during 2012 due to the sustained growth of energy prices and indirect taxes. The Governing Board closely monitors, so that high energy prices do not start influencing the level of wages, profits and total price dynamics in the region. Draghi also noted that the banks need to consolidate their positions now, otherwise the credit growth is impossible. Commenting the LTRO operations, he said that all non-conventional monetary policy measures have only temporary nature. The European currency is stable in the middle of the European session, being near a strong resistance level of 1.3220 against the dollar and the fluctuating around 107.3 against the yen.