Press conference by Mario DRAGHI, ECB President following the ECB Governing Council meeting: extracts
Première transmission: 06/06/2012
Frankfurt am Main, Germany - ECB
Fin de production: 06/06/2012
The Governing Council of the European Central Bank (ECB) decided today 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 eurozone governments to tackle the debt crisis.
At a press conference, Mario Draghi, ECB President, said that ECB Governing Council has today 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.
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 confererence (3 shots)
||SOUNDBITE (English) by Mario Draghi on key ECB interest rates, saying that based on our regular economic and monetary analyses, the bank 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 the ECB has implemented both standard and non-standard monetary policy measures. This combination of measures has supported the transmission of its monetary policy. Today, the bank has 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.
||Cutaway of press
||SOUNDBITE (English) by Mario Draghi saying that the context is a one where there are liquidity constraints and tensions in financial markets. One has to appreciate the effectiveness of the conventional measures in this new context.
||SOUNDBITE (English) by Mario Draghi on Greece, saying that the ECB welcomes the fact that the 4 Greek banks that were lacking capital have been recapitalised, and therefore re-admitted as a counterpart to monetary policy decision.
||SOUNDBITE (English) by Mario Draghi on Spain, saying that one will be waiting for the independent assessment of the firms that have been hired by the Spanish government. Any decision about the EFSF should be based on realistic assessments of the needs to recapitalize the banks and the money that is available to the governments without external support. The assessment has to be realistic and based on figures and data.