5 Sep 2013
ECB's Draghi reiterates forward guidance on rates
FXstreet.com (Barcelona) - At the press conference following the ECB Governing Council's decision to keep interest rates unchanged at 0.5% in September, president Mario Draghi reiterated that key interest rates would remain at the current or lower levels for an extended period of time.
He stressed that economic activity in the Eurozone is improving, as confidence indicators show, and that the ECB is ready to support the recovery with its accommodative monetary policy. Current geopolitical tensions are one of the main threats to the recovery, he said.
Inflation in the Eurozone is low and should remain at this level in the coming months. Upside risks on inflation are connected with higher indirect taxes and commodity prices, while downside risks stem from weaker growth.
The ECB has risen its Eurozone 2013 growth forecast to -0.4% from -0.6% and lowered the projection for 2014 to 1% from 1.1%. As far as inflation is concerned, the forecast for 2013was hiked to 1.5% from 1.4% this year and left unchanged at 1.3% for 2014.
Mario Draghi also stressed the importance of setting up the banking union quickly, as "weak loan dynamics continue to reflect the current state of the business cycle."
He stressed that economic activity in the Eurozone is improving, as confidence indicators show, and that the ECB is ready to support the recovery with its accommodative monetary policy. Current geopolitical tensions are one of the main threats to the recovery, he said.
Inflation in the Eurozone is low and should remain at this level in the coming months. Upside risks on inflation are connected with higher indirect taxes and commodity prices, while downside risks stem from weaker growth.
The ECB has risen its Eurozone 2013 growth forecast to -0.4% from -0.6% and lowered the projection for 2014 to 1% from 1.1%. As far as inflation is concerned, the forecast for 2013was hiked to 1.5% from 1.4% this year and left unchanged at 1.3% for 2014.
Mario Draghi also stressed the importance of setting up the banking union quickly, as "weak loan dynamics continue to reflect the current state of the business cycle."