Draghi speech: Active fiscal policy could lead to higher interest rates

Speaking at a farewell celebration in Frankfurt, Mario Draghi, the outgoing president of the European Central Bank (ECB), said that the monetary policy could still achieve its objective, but added that it can do so faster and with fewer side effects if fiscal policies are aligned with it.

"What unites the Governing Council has always been – and will always be – much greater than anything that might divide it," Draghi said in his prepared remarks. "A more active fiscal policy in the euro area would make it possible to adjust our policies more quickly and lead to higher interest rates."

The EUR/USD pair largely ignored these comments and was last seen trading at 1.1088, adding 0.1% on a daily basis.