It is too early to declare success, ECB's Draghi says

Economic risks have further diminished but it is too early to declare success, European Central Bank chief Mario Draghi reiterated, contrary to speculation that he might sound a more optimistic note.

"Incoming data confirm that the cyclical recovery of the euro area economy is becoming increasingly solid and that downside risks have further diminished.

Nevertheless, it is too early to declare success. Underlying inflation pressures continue to remain subdued and have yet to show a convincing upward trend," he said.

That echoed the introductory statement released following the Governing Council's last policy meeting on 27 April, which was taken to mean that an increase in the rate on its deposit facility, which was negative, might be nearer on the horizon.

Following the result of the run-off vote in the French presidential elections however, speculation had reappeared that the ECB might return to a more neutral balance-of-risks assessment.

Apparently not.

In his speech, Draghi also continued to beat the drum on the need for further structural reforms and improvements to the economic governance of the single currency area, such as by completing the banking union, moving towards a fully-fledged capital markets union and working towards a fiscal union as outlined in the Five Presidents report published in June 2015.

That report envisaged creating a fiscal stabilisation function to help cushion the blow form "large macroeconomic shocks" but not to fine-tune the economic cycle.

On a related note and in discussing the benefits of the euro for Holland, he noted how increased growth in the bloc had seen the country post its first budget surplus since 2008 even as global trade remained "tepid".

Draghi also noted recent dynamics in real estate markets and high levels of household debt in some member countries, but argued those be attended to via macroprudential policies at the national level and not through monetary policy.