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Draghi: Eurozone growth momentum has weakened, but monetary policy cannot do all the heavy lifting

FXStreet (London) - Speaking at the Finnish parliament in Helsinki, European CentraL Bank president Mario Draghi has echoed some of the comments made by Bundesbank president Jens Weidmann earlier this week, stressing that time is needed for the effects of central bank stimulus measures to take effect.

The ECB president reinforced his commitment to aggressive expansion of the central bank’s balance sheet, saying that he expects it to expand to “early 2012 levels”.

Draghi added that monetary policy cannot do all the heavy lifting but would not elaborate on possible upcoming measures.

Pointing to European financing conditions, which he described as “exceptionally sluggish”, Draghi said that the ECB prediction of moderate recovery is still in place. His comments followed data released by the ECB this morning which showed that Eurozone bank lending remained unchanged month-on-month in October with a 1,1 percent contraction on the year.

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