Press conference by Mario DRAGHI, ECB President, following the ECB Governing Council meeting: extracts
Première transmission: 12/01/2012
Frankfurt am Main, Germany - ECB
Fin de production: 12/01/2012
As foreseen by economists, the Governing Council of the European Central Bank (ECB) decided today to keep the key ECB interest rates on hold.
In his monthly press conference, Mario Draghi, ECB President, said that the euro zone economy faces high uncertainty and inflation will drop below 2 percent after several months. But he added there were some signs of stabilisation.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of Mario Draghi, ECB President, at the press conference (3 shots)
||SOUNDBITE (English) by Mario Draghi on the key ECB interest rates, saying that based on its regular economic and monetary analyses, the Governing Council decided today to keep the key ECB interest rates unchanged, following the 25 basis point decreases on 3 November and 8 December 2011. The information that has become available since early December broadly confirms our previous assessment. Inflation is likely to stay above 2% for several months to come, before declining to below 2%. At the same time, the underlying pace of monetary expansion remains moderate. As expected, ongoing financial market tensions continue to dampen economic activity in the euro area, while, according to some recent survey indicators, there are tentative signs of a stabilisation in activity at low levels. The economic outlook remains subject to high uncertainty and substantial downside risks.
||SOUNDBITE (English) by Mario Draghi on the bank non-standard measures, saying that the banks that have borrowed the money from the ECB are not the same that are re-depositing the money in the deposit facility of the ECB.
||Cutaway of press
||SOUNDBITE (English) by Mario Draghi saying that some survey data seem to indicate that there may be some stabilisation at low levels. But it is not possible to express a judgement of confidence. Hard data do not yet show this. A relatively new element of this crisis is that there is a lot of heterogeneity in the euro area. Some countries seem to live through this crisis with lower growth rate but non-sizable developments that one would call a recession. Then there are other countries where, because they are stressed and vulnerable to financial tensions, one can see an incoming recession. To give an average judgement of this very complex heterogeneous situation is actually very very difficult now.
||SOUNDBITE (English) by Mario Draghi saying that Greece has to bring back its fiscal action on track. It has to complete the structural reforms and has to move forward on the fiscal consolidation front.