Market News
April 4, 2013 @ 7:53 pm

ECB Chief Mario Draghi: euro zone economy will recover in the second half of the year

 The European Central Bank left the key interest rate unchanged on Thursday, helping lift the euro against the dollar.

ECB President Mario Draghi in his press conference said the central bank will wait to see if the recession-hit euro zone will pick up and whether an aggressive policy move by the Bank of Japan helps the euro zone.

The following are comments by the ECB Chief from his press conference.

ECONOMY TO PICK UP IN SECOND HALF

 “Weak economic activity has extended into the early part of the year and a gradual recovery is projected for the second half of this year, subject to downside risk.”

DOWNSIDE RISKS

 “The downside risks include the possibility of even weaker than expected domestic demand, and slow or insufficient implementation of structural reforms in the euro area. These factors have the potential to dampen the improvement in confidence and thereby delay the recovery.”   

  INFLATION

  “Inflation rates have declined further as anticipated and price developments over the medium term should remain contained.

   Monetary and loan dynamics remain subdued.”   

 “Inflation expectations for the euro area continue to be firmly anchored in line with our aim of maintaining inflation rates below but close to 2 percent over the medium term.”   

 “In the coming weeks, we will monitor very closely all the incoming information on economic and monetary developments, and assess the impact on the outlook for price stability.”

   

 

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