The ECB leaves interest rates unchanged at 0,5% as expected. And in the usual press conference after the board meeting, Mario Draghi reiterated that the Eurotower will keep interest rates at the current level, or lower, for an "extended period of time". Moreover. Draghi once again recalls that the ECB has not reached the minimum threshold on the level of interest rates and that there is no precise deadline for the commitment to keep rates at current levels or lower.
But he explained that forward guidance (low rates for an extended period) is based on an assessment that the inflation outlook remains weak over the medium term, ensuring that liquidity will remain plentiful for as long as needed. The rates on the marginal lending facility and on deposits with the central bank will also remain unchanged at 1,00% and 0,00% respectively.
However, there are no signs of deflation in any country in the Eurozone, according to the findings of the ECB. On the economic front, some improvement can be seen on the horizon. The ECB expects a "gradual recovery" in the rest of the year, with recent confidence data confirming expectations of a stabilization of economic activity.
The year-on-year decline in lending has worsened further, Draghi said, while the household credit crunch remains at previous levels. Taking into account that the trend of credit to the economy is moving late, the ECB forecasts an improvement but with a certain delay compared to the improvement in the economic situation.
Draghi, with reference to the hypothesis of publishing the minutes of the meetings, finally notes that the debate on how to make the decision-making process of the ECB council more transparent is still "in an initial phase". "We are not the USA, we are not the United Kingdom in Japan" - he said - "any change must not jeopardize the independence of the members of the governing council".
On the reforms in Italy and on how they proceed in relation to the famous letter of summer 2011 sent to the Government by the Eurotower, questioned by journalists, Draghi preferred not to comment: "I'm sorry but I have to answer as before: I don't comment on Italy" , he said.
