Forex News – Highlights of ECB Press Conference

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ECBThe following are comments by European Central Bank President Mario Draghi at a news conference after the bank cut its key interest rate by 25 basis points to 1 percent on Thursday.

RATE CUT DECISION NOT UNANIMOUS

“Was it unanimous, I said no. There was a discussion. … It was a majority.”

NO DISCUSSION ON CAPPING BOND YIELDS

Asked, in relation to further measures, if the Governing Council had discussed putting a cap on bond yields:

“The answer to the second question is no, we never discussed that (putting a cap on bond yields).”

 

SUBSTANTIAL DOWNSIDE RISKS TO OUTLOOK

“The intensified financial market tensions are continuing to dampen economic activity in the euro area and the outlook remains subject to high uncertainty and substantial downside risks.”

“Evidence from data points to weaker economic growth in the fourth quarter.

“At the same time we expect euro zone economic activity to recover in the course of next year.”

INFLATION TO STAY ABOVE 2 PCT FOR MONTHS

“Inflation rates have been at elevated levels since the end of last year, mainly driven by higher energy and other commodity prices.

“Looking ahead, they are likely to stay above 2 percent for several months to come, before declining to below 2 percent. This pattern reflects the expectation that, in an environment of weaker growth in the euro area and globally, underlying cost, wage and price pressures in the euro area should also remain modest.”