5 Takeaways From Mario Draghi's ECB News Conference

European Central Bank President Mario Draghi’s news conference was characterized by a more upbeat outlook for the eurozone economy, reflecting the boost from lower oil prices as well as a weaker currency and the new program of quantitative easing. Mr. Draghi appeared confident the ECB would be able to buy the bonds it needs to implement the program, and that it would therefore succeed in raising growth and inflation. He was also robust in the defense of the central bank’s approach to Greece, and again urged eurozone politicians to push ahead with reforms.

#1: Save the date

QE will launch Monday, March 9. Mr. Draghi gave the impression that the ECB is keen to get going with a new venture it believes will be successful. In addition to naming the date, Mr. Draghi said it will likely be necessary to buy €60 billion ($66.48 billion) of bonds a month until September 2016, but if more needs to be done, the program will continue “until we see a sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below, but close to, 2% over the medium term.”

#2: Bonds aplenty

There is no shortage of eurozone government bonds. Given that the eurozone is still in the throes of a sovereign debt crisis, it may have come as a bit of a surprise to some that financial market participants are worried there may not be enough government bonds to meet the ECB’s ravenous demand. Not so, said Mr. Draghi, although he did acknowledge there might be “complexities” in meeting the ECB’s needs. He also pointed out that much the same, misplaced concern had been expressed when both the Fed and BOE launched their programs.

#3: Sunshine ahead?

The future is looking bright. The ECB’s economists raised their growth forecasts, and now see the eurozone economy growing 1.5% this year, 1.9% next year, and 2.1% in 2017. That should help boost inflation. The economists expect prices to be unchanged this year, having fallen in January and February, before rising 1.5% in 2016 and 1.8% in 2017. The figure for 2017 essentially says inflation will be on target during the second half of that year.

#4: Greece is the word

The ECB isn’t being mean to Greece. In the face of some hostile questioning, Mr. Draghi defended the governing council’s decision not to reinstate a waiver that would allow it to buy Greek government bonds, and allow Greek banks to use those same instruments as collateral in its refinancing operations. The waiver was suspended in February as it appeared uncertain whether the new Greek government would agree a deal with its international creditors. But Mr. Draghi did announce that the ECB will allow the Bank of Greece to provide more emergency support of the nation’s banks.

#5: Negative thinking

Negative is OK, up to a point. Mr. Draghi said the ECB will buy bonds that carry a negative yield, as long as that doesn’t fall below the rate it charges banks on deposits, which is minus 0.20%.