JACKSON HOLE, Wyo. (Reuters) - The European Central Bank’s ultra easy monetary policy is successful and the euro zone’s economic recovery is taking hold, but patience is still needed for inflation to converge with the bank’s target, ECB President Mario Draghi said on Friday.
Speaking during a question-and-answer session following a speech at the U.S. Federal Reserve’s annual conference in Jackson Hole, Wyoming, Draghi said he was confident inflation would converge with the ECB’s target of almost 2 percent as output rises towards capacity.
He noted that slack in the labour market for now was keeping wage growth and ultimately inflation muted.
Hoping to boost anaemic inflation, the ECB has bought over 2 trillion euros worth of bonds in the past two years. With the purchases set to end in December, policymakers will decide this autumn whether to extend or wind them down, reconciling a dilemma between rapid growth and slow inflation.
Reporting by Howard Schneider; Writing by Balazs Koranyi; Editing by Paul Simao