Draghi spoke on Saturday from the sidelines of the G20: • We expect the drag on growth from fiscal consolidation to considerably diminish in coming months • Sees stabilization in lending flows • Eurozone faces long period of low inflation • IMF and ECB have different deflation definitions • ECB policies aren’t directly targeted at FX rates • ECB will use further monetary policy instruments if needed to support recovery Two minor, but notable changes in rhetoric stand out: 1. ‘Directly targeted at FX rates’ is a slight departure from ‘not targeted at rates’. It basically says that Draghi is okay with euro weakness. ... (full story)