ECB leaves interest rates unchanged
ECB’s president Mario Draghi has delivered the bank’s report saying that a prolonged period of low inflation is expected to be followed by rates close to 2% later on.
“Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. Incoming information and analysis have confirmed our assessment and monetary policy decisions of last month,” Draghi (pictured) said.
The ECB’s also said that both underlying price pressure and monetary credit dynamics in the euro area will remain subdued over the medium term.
“At the same time, inflation expectations for the euro area over the medium to long term continue to be firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2%,” he added.
Draghi also stressed that the ECB is ready to consider “all available instruments” in order to keep prices stable, adding that the ECB monetary policy stance “will remain accommodative for as long as necessary”.
Draghi also forecasted that the economy will grow again in the fourth quarter.
Summing up, Draghi said: “The economic analysis indicates that we may experience a prolonged period of low inflation, to be followed by a gradual upward movement towards inflation rates below, but close to, 2% later on. A cross-check with the signals from the monetary analysis confirms this picture.”
Click here to read full speech.