REPEAT: MNI: ECB Draghi: No Signs Of Excess Credit Growth,

Repeats Story Initially Transmitted at 09:18 GMT Oct 12/05:18 EST Oct 12

--Must Monitor Some Sectors Of Real Estate Markets

By Luke Heighton

     FRANKFURT (MNI) - There is no indication of excessive credit growth or

broad-based asset price misalignments, European Central Bank President Mario

Draghi said Friday, in remarks made at the start of the IMF's annual meeting in

Bali.

     But Draghi highlighted the risks to euro zone growth and stability posed by

the uncertainty generated by external factors.

     He also warned that certain sectors of the real estate markets warrant

close monitoring in some euro area countries, in particular following up on

warnings issued by the European Systemic Risk Board.

     Here are the key points from his speech:

     --Recent episodes of heightened financial market volatility have led to

only limited contagion across countries and markets.

     --The euro area economy continues to expand in a broad-based manner, across

countries and sectors, despite some moderation following the strong growth seen

in 2017.

     --Underlying inflation is expected to pick up towards the end of the year

and then increase gradually over the medium term, even after a gradual

winding-down of net asset purchases.

     --Significant monetary policy stimulus is still needed to support the

further build-up of domestic price pressures and headline inflation developments

over the medium term.

     --An orderly withdrawal of the UK from the European Union poses a limited

overall risk to the euro area's financial stability. However, the uncertainty

triggered by a cliff-edge Brexit could have the potential to pose a more

significant downside risk to financial stability.

--MNI Frankfurt Bureau; +49-69-720-146; email: luke.heighton@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com