“Our monetary policy stance will remain accommodative as long as necessary. All key rates will remain at current levels, if not lower, for an extended period”, since “the prospects are for moderate inflation in the medium term, firmly in line with our objectives”. The president of the ECB said Mario Draghi, in the press conference at the end of the Governing Council that confirmed the interest rates for the Eurozone, the historic low of 0,5%. The words of the central banker have gave wings to the European Broses: at the beginning of the afternoon, Piazza Affari gained 2,9%, Frankfurt 1,6%, Paris 2% and London 2,8%.
The decision to give this indication represents "an unprecedented step" by the Council, said the head of the ECB, and was taken "unanimously, which is an important fact". The fact that similar indications were received today from the new governor of the Bank of England, Mark Carney, was instead "a coincidence".
“Credit dynamics remain contained – continued Draghi -. The GDP of the Eurozone fell by 0,3% in the first quarter of 2013 and by 0,6% in the last quarter of 2012. The labor market remains weak. International demand should support an initial recovery by the end of the year and domestic demand should improve thanks to the accommodative monetary policy. The improvements on the financial front should translate into the real economy, which should stabilize and recover by the end of the year, albeit at a slow pace. However, there are still downside risks, also in terms of demand, which slows down the implementation of reforms in the various states”.
As for the European initiatives to curb youth unemployment, "it is crucial to contribute to a sustainable recovery in the euro area", said the number one of Eurotower. Lastly, the Governing Council "welcomes the measures taken towards banking union, but underlines the urgency of implementing these measures", concluded Draghi.
