ECB pessimism triggers euro slump
04 September 2015 Frankfurt
Image: Shutterstock
The European Central Bank (ECB) has cut its growth and inflation forecasts, causing the euro to drop to a two-week low.
ECB president Mario Draghi delivered the news in a press conference at the ECB's headquarters in Frankfurt after a meeting of the governing council on 3 September.
Primarily, Draghi stated that interest rates on the main refinancing operations and the marginal lending and deposit facilities will remain unchanged at 0.05 percent, 0.30 percent and -0.20 percent respectively.
“The information available indicates a continued though somewhat weaker economic recovery and a slower increase in inflation rates compared with earlier expectations,” he explained.
“However, owing to sharp fluctuations in financial and commodity markets, the governing council judged it premature to conclude on whether these developments could have a lasting impact on the outlook for prices.”
Draghi also emphasised the council’s, “willingness and ability to act, if warranted, by using all the instruments available within its mandate”.
ECB president Mario Draghi delivered the news in a press conference at the ECB's headquarters in Frankfurt after a meeting of the governing council on 3 September.
Primarily, Draghi stated that interest rates on the main refinancing operations and the marginal lending and deposit facilities will remain unchanged at 0.05 percent, 0.30 percent and -0.20 percent respectively.
“The information available indicates a continued though somewhat weaker economic recovery and a slower increase in inflation rates compared with earlier expectations,” he explained.
“However, owing to sharp fluctuations in financial and commodity markets, the governing council judged it premature to conclude on whether these developments could have a lasting impact on the outlook for prices.”
Draghi also emphasised the council’s, “willingness and ability to act, if warranted, by using all the instruments available within its mandate”.
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