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9 Jan 2014
Draghi: ECB prepared to take further decisive action if needed
FXstreet.com (Łódź) - As expected, the ECB Governing Council decided to keep rates unchanged in January, after reducing the main interest rate by 25 basis points to 0.25% in November.
During his first press conference of the year, ECB head Mario Draghi reiterated the central bank's forward guidance of keeping interest rates at present or lower levels for an extended period of time.
The ECB head stated that inflation should remain low in the upcoming months, before gradually returning to the ECB's target level of 2%. Therefore, the monetary policy stance would be kept accommodative for as long as necessary and the central bank would be ready to consider all the available instruments. “Further decisive action” would be taken if needed.
Mario Draghi pointed to the improvement in recent economic indicators suggesting a gradually progressing recovery in the Eurozone. He acknowledged however the high unemployment and weak loan dynamics.
During the Q&A part of the press conference the ECB head signaled that the Governing Council discussed all possible instruments, although he declined to speculate on which specifically could be used.
The ECB would act should a tightening of money markets occur or in case of a weakened inflation outlook, he said.
During his first press conference of the year, ECB head Mario Draghi reiterated the central bank's forward guidance of keeping interest rates at present or lower levels for an extended period of time.
The ECB head stated that inflation should remain low in the upcoming months, before gradually returning to the ECB's target level of 2%. Therefore, the monetary policy stance would be kept accommodative for as long as necessary and the central bank would be ready to consider all the available instruments. “Further decisive action” would be taken if needed.
Mario Draghi pointed to the improvement in recent economic indicators suggesting a gradually progressing recovery in the Eurozone. He acknowledged however the high unemployment and weak loan dynamics.
During the Q&A part of the press conference the ECB head signaled that the Governing Council discussed all possible instruments, although he declined to speculate on which specifically could be used.
The ECB would act should a tightening of money markets occur or in case of a weakened inflation outlook, he said.