Wednesday 02 October 2013 8:49 am

Euro trades above $1.36 as ECB’s Draghi suggests monetary policy will stay loose

European Central Bank president Mario Draghi has said that the central bank stands "ready to use all available instruments, including an LTRO". That's a heads up that monetary policy will stay loose (in addition to his usual "monetary policy will remain accommodative" spiel).

Draghi's assessment of inflation risks saw no change – he said they were "broadly balanced". Investors were looking to whether Draghi's comments would suggest a downward shift to this outlook. What Draghi didn't mention is the huge disparities in inflation rates across the Eurozone.

Highlights from other answers Draghi gave included that he sees the Eurozone and the euro as more resilient today than they used to be, and that while a rate cut was discussed but the central bankers decided that the economy did not warrant this.

Oh, he also thinks there is "only one way to skin a cat". We think you may have messed that up a bit Mario.

During the Q&A session the euro traded above $1.36, but that could be down to the successful Italian confidence vote going on at the same time.

In his opening comments, Draghi said that governments must continue to reduce debt and deficit levels, and that it is essential to strengthen the resilience of banks and to work towards a European Union banking union (in Q&A Draghi said that he sees a banking union before next March).