Business News

CCTV Script 07/02/17


This is the script of CNBC's news report for China's CCTV on February 7, Tuesday.

Welcome to CNBC Business Daily, I'm Qian Chen.

European Central Bank President Mario Draghi said Monday it is still too early to start winding down the bank's QE program, brushing off fresh criticism of the bond purchases in Germany due to inflation picking up.

In a hearing at the European Parliament in Brussels, Mr. Draghi highlighted recent improvements in the eurozone's economy, including declining unemployment.

However, he said policy makers wouldn't overreact to a recent rise in inflation, which he attributed to higher energy prices.

"Support from our monetary policy measures is still needed," Mr. Draghi said. "We need to be convinced that movements in headline inflation are sustained."

The ECB decided in December to expand its QE program by a half-trillion euros, through the end of this year. The move has triggered fresh criticism of the central bank in Germany, Europe's largest economy, and sparked a rare public spat between senior German and U.S. officials.

In Germany, the recent rise in inflation has fueled criticism of the ECB's low interest rates, which opponents have blamed for harming the region's savers.

German Finance Minister has sparred verbally with Mr. Draghi in the past-responded to the U.S. criticism, laying the blame for Germany's giant trade surpluses at the ECB's door.

At Monday's hearing, Mr. Draghi sought to diffuse the dispute. He argued that different central-bank policies reflected "diverse positions in the [economic] cycle" between the U.S. and the eurozone.

Pressed on when the ECB might start to wind down its bond purchases, Mr. Draghi said it would only consider doing so when inflation rises across the region in a durable way. The ECB might even step up its stimulus measures if economic conditions deteriorate, he said.

Asked about a possible burst of protectionism, Mr. Draghi said the ECB was watching developments with concern.

"We'll have to judge when we see put in place what is being announced," he said.

CNBC's Qian Chen, reporting from Singapore.