Forex News – Draghi comments on downside risks to euro zone
April 4, 2013 9:36 pm
The European Central Bank held a policly meeting on Thursday and announced its decision to maintain the benchmark interest rate at 0.75 percent, as widely expected.
The following are highlights of the ECB President Mario Draghi post-meeting news conference:
DOWNSIDE RISKS “The downside risks include the possibility of even weaker than expected domestic demand, and slow or insufficient implementation of structural reforms in the euro area. These factors have the potential to dampen the improvement in confidence and thereby delay the recovery.”
INFLATION “Inflation rates have declined further as anticipated and price developments over the medium term should remain contained. Monetary and loan dynamics remain subdued.”
“Inflation expectations for the euro area continue to be firmly anchored in line with our aim of maintaining inflation rates below but close to 2 percent over the medium term.”
“In the coming weeks, we will monitor very closely all the incoming information on economic and monetary developments, and assess the impact on the outlook for price stability.”
ECONOMY TO PICK UP IN SECOND HALF “Weak economic activity has extended into the early part of the year and a gradual recovery is projected for the second half of this year, subject to downside risk.”
The European Central Bank held a policly meeting on Thursday and announced its decision to maintain the benchmark interest rate at 0.75 percent, as widely expected.
The following are highlights of the ECB President Mario Draghi post-meeting news conference:
DOWNSIDE RISKS
“The downside risks include the possibility of even weaker than expected domestic demand, and slow or insufficient implementation of structural reforms in the euro area. These factors have the potential to dampen the improvement in confidence and thereby delay the recovery.”
INFLATION
“Inflation rates have declined further as anticipated and price developments over the medium term should remain contained.
Monetary and loan dynamics remain subdued.”
“Inflation expectations for the euro area continue to be firmly anchored in line with our aim of maintaining inflation rates below but close to 2 percent over the medium term.”
“In the coming weeks, we will monitor very closely all the incoming information on economic and monetary developments, and
assess the impact on the outlook for price stability.”
ECONOMY TO PICK UP IN SECOND HALF
“Weak economic activity has extended into the early part of the year and a gradual recovery is projected for the second half of this year, subject to downside risk.”
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