12 Dec 2013
ECB: Policy to remain accommodative as long as needed
FXstreet.com (Córdoba) - The ECB reiterated Thursday it will keep its monetary policy losses as long as needed to support the Eurozone economy as risks are tilted to the downside.
"The monetary policy stance will remain accommodative for as long as necessary, and will thereby continue to assist the gradual economic recovery in the euro area", the ECB said in its monthly bulletin.
The ECB expects Eurozone GDP to fall 0.4% this year and pick up to 1.1% growth in 2014 and 1.5% in 2015. The ECB said the euro area 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.
Also Thursday, ECB President Mario Draghi spoke before the Plenary of the European Parliament explained the reasons underlying recent bank's decisions. Draghi said that since the crisis began, the Eurozone has been experiencing weak recovery. "Weak economic activity and high unemployment have resulted in a subdued inflation", he said. "Against this backdrop, and in respect of our price stability mandate that was assigned to us by the Treaty, we have lowered our key interest rates to historically low levels".
Draghi noted that the ECB has also introduced nonstandard measures to address uneven transmission of rate cuts across Eurozone members.
"The monetary policy stance will remain accommodative for as long as necessary, and will thereby continue to assist the gradual economic recovery in the euro area", the ECB said in its monthly bulletin.
The ECB expects Eurozone GDP to fall 0.4% this year and pick up to 1.1% growth in 2014 and 1.5% in 2015. The ECB said the euro area 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.
Also Thursday, ECB President Mario Draghi spoke before the Plenary of the European Parliament explained the reasons underlying recent bank's decisions. Draghi said that since the crisis began, the Eurozone has been experiencing weak recovery. "Weak economic activity and high unemployment have resulted in a subdued inflation", he said. "Against this backdrop, and in respect of our price stability mandate that was assigned to us by the Treaty, we have lowered our key interest rates to historically low levels".
Draghi noted that the ECB has also introduced nonstandard measures to address uneven transmission of rate cuts across Eurozone members.