Extracts from the press conference by Mario Draghi, President of the ECB, following the ECB Governing Council meeting

Type: Summary of press conference   Reference: I-073605   Duration: 10:03:34  Lieu:
End production: 06/06/2012   First transmission: 06/06/2012
On 6 June 2012, The Governing Council of the European Central Bank (ECB) decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1.00%, 1.75% and 0.25% respectively, as it increased the pressure on Euro Zone governments to tackle the debt crisis. At a press conference, Mario Draghi, President of the European Central Bank (ECB), said that ECB Governing Council decided to continue conducting its main refinancing operations (MROs) as fixed rate tender procedures with full allotment for as long as necessary, and at least until the end of the 12th maintenance period of 2012 on 15 January 2013.

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TIME DESCRIPTION DURATION
10:00:00 Title 00:00:05
10:00:05 Arrival of Mario Draghi, President of the European Central Bank (ECB), at the press conference (3 shots) 00:00:19
10:00:24 Soundbite by Mario Draghi (in ENGLISH): Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. While inflation rates are likely to stay above 2% for the remainder of 2012, over the policy-relevant horizon we expect price developments to remain in line with price stability. Consistent with this picture, the underlying pace of monetary expansion remains subdued. Inflation expectations for the euro area economy continue to be firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2% over the medium term. At the same time, economic growth in the euro area remains weak, with heightened uncertainty weighing on confidence and sentiment, giving rise to increased downside risks to the economic outlook. In previous months we have implemented both standard and non-standard monetary policy measures. This combination of measures has supported the transmission of our monetary policy. Today, we have decided to continue conducting our main refinancing operations (MROs) as fixed rate tender procedures with full allotment for as long as necessary, and at least until the end of the 12th maintenance period of 2012 on 15 January 2013. 00:01:36
10:02:01 Cutaway of a journalist 00:00:05
10:02:06 Soundbite by Mario Draghi (in ENGLISH): We have to be aware that the context is one of liquidity constraints and tensions in financial markets. One has to appreciate the effectiveness of these conventional measures in this new context. 00:00:17
10:02:24 Cutaway of a journalist 00:00:05
10:02:29 Soundbite by Mario Draghi (in ENGLISH): With regard to the Greek banks, I have said that we welcome the fact that the four Greek banks which were lacking capital have been recapitalised and, therefore, have been readmitted as counterparty to monetary policy operations. 00:00:18
10:02:48 Cutaway of a journalist 00:00:04
10:02:53 Soundbite by Mario Draghi (in ENGLISH): We will have to wait for the independent assessment of the firms that have been hired by the Spanish government, which will be a granular assessment. I think that any decision about the EFSF should be based on realistic assessments of the need to recapitalise banks and the money that is available to governments without having to require any external support. The assessment has to be realistic and based on figures and data. 00:00:41
10:03:34 Cutaway of a journalist 00:00:05
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