European Central Bank President Mario Draghi said it was far too soon to talk about an exit from its massive emergency loans to banks, saying that any such move would be premature while the 17-country eurozone was struggling with slack economic conditions and record high levels of unemployment.
The press conferences following the European Central Bank's monthly monetary policy decisions have been pretty uneventful as of late. On every first or second Thursday of the month, ECB President Mario Draghi is happy to remind reporters at the ECB press conference just how in control of European sovereign debt markets the central bank is.
The bank also lowered its benchmark interest rate to 0.50% from 0.75%, the first cut in 10 months.
Worries about eurozone persist, with data showing manufacturing activity across the 17-nation bloc shrank in April.
The ECB also extended its cheap loans to banks until at least July 2014, reports The BBC.
Official data released on Tuesday showed record high unemployment in the eurozone, and inflation at a three-year low.
JACKSON HOLE, Wyo. — European Central Bank chief Mario Draghi is confident that stimulus steps announced in June, helped by a weaker euro, will boost demand in the ailing eurozone economy, but stressed on Friday that the central bank stands ready to do more.
Speaking at the annual Jackson Hole conference of central banks, Draghi said recent growth data confirmed the currency bloc’s recovery remained “uniformly weak” and promised to keep the policy stance accommodative for an extended period of time.
Wow! This confirms how the ECB under Draghi has changed. They’ve become pretty pro-active
FRANKFURT — The European Central Bank cut interest rates to a new record low on Thursday, responding to a slump in inflation way below its target that has sparked fears the eurozone’s economic recovery could stall.
The press conferences following the European Central Bank’s monthly monetary policy decisions have been pretty uneventful as of late.
On every first or second Thursday of the month, ECB President Mario Draghi is happy to remind reporters at the ECB press conference just how in control of European sovereign debt markets the central bank is.
Technically speaking, the European Central Bank did nothing at its monthly meeting last week. Despite plenty of discussion that May might finally have been the month for fresh monetary stimulus, policymakers not only left interest rates where they were, they also failed to offer up a quantitative easing program that many had hoped for. Instead, ECB President Mario Draghi did what he’s become quite expert at doing—he offered soothing assurances of preparedness.
The European Central Bank announced it was cutting interest rates to a new record low Thursday and that it would begin a new asset buying program next month in an effort to prop up the struggling eurozone economy.
ECB President Mario Draghi revealed that for the second time in a year, the central bank would cut its benchmark interest rate, from the current 0.15% to 0.5%. The bank will also begin purchasing private-sector asset-backed securities in October, including covered bonds.
The European Central Bank's (ECB) simultaneous announcement of an asset purchase program and cuts to its main interest rates should provide a strong message to European leaders: We have done all we can, now it's your turn.