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4 Jul 2013
Draghi: ECB to keep interest rates at low level for extended period of time
The ECB Governing Council decided to keep the main interest rate unchanged at 0.5% at their July monetary policy meeting, also attended by the European Commission vice president Olli Rehn.
ECB president Mario Draghi suggested that inflation rates should stay “below, but close to, 2% over the medium term.” He also pointed out that confidence indicators in the Eurozone have been improving of late and that a gradual recovery should begin later this year. Therefore the ECB will continue with its accomodative monetary policy stance, in order to support economic activity.
“The Governing Council expects the key ECB interest rates to remain at present or lower levels for an extended period of time,” Draghi declared, offering thus unprecedented forward guidance on the ECB's interest rates. He also assured that the OMT program, which has helped alleviate tensions on financial markets, was ready to be activated whenever necessary.
Despite the recent volatility seen recently in financial markets the ECB chief said that the broader improvement in market sentiment over the last few months should filter through into the EU economy.
ECB president Mario Draghi suggested that inflation rates should stay “below, but close to, 2% over the medium term.” He also pointed out that confidence indicators in the Eurozone have been improving of late and that a gradual recovery should begin later this year. Therefore the ECB will continue with its accomodative monetary policy stance, in order to support economic activity.
“The Governing Council expects the key ECB interest rates to remain at present or lower levels for an extended period of time,” Draghi declared, offering thus unprecedented forward guidance on the ECB's interest rates. He also assured that the OMT program, which has helped alleviate tensions on financial markets, was ready to be activated whenever necessary.
Despite the recent volatility seen recently in financial markets the ECB chief said that the broader improvement in market sentiment over the last few months should filter through into the EU economy.