ECB Head Mario Draghi made a speech at the press conference after the first meeting of the Bank’s Board of Directors this year. As a result, it was decided to maintain interest rates at their previous levels. The statement of the European Central Bank also says that the rates will not be changed until August this year.
Mario Draghi said in his speech that the recent statistics on the eurozone economy show weaker than expected. Their dynamics is negatively affected by the weakening of demand, as well as by some other factors. Among them is the deterioration of moods in companies due to protectionism and the complex geopolitical situation.
According to the ECB head, inflation is likely to decline in the near future. However, in the medium term, the growth rate of consumer prices may accelerate. This will be facilitated by higher economic growth rates, wage increases and regulatory policies.
The Board of Directors of the bank believes that a recession in the euro zone is unlikely. The banking sector is in a strong position. In the event of unforeseen situations, the Central Bank is ready to promptly take appropriate measures. The ECB has at its disposal a fairly large set of tools for this, said Mario Draghi.