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-074165   Duration: 10:03:36  Lieu:
End production: 02/08/2012   First transmission: 02/08/2012
On 2 August 2012, Mario Draghi, President of the ECB, held a press conference following the ECB Governing Council meeting. As foreseen by financial analysts, the Governing Council of the European Central Bank (ECB) decided today that the interest rate on the main refinancing operations, the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.75%, 1.50% and 0.00% respectively.

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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) (4 shots) 00:00:25
10:00:30 Soundbite by Mario Draghi (in ENGLISH): The Governing Council, within its mandate to maintain price stability over the medium term and in observance of its independence in determining monetary policy, may undertake outright open market operations of a size adequate to reach its objective. In this context, the concerns of private investors about seniority will be addressed. Furthermore, the Governing Council may consider undertaking further non-standard monetary policy measures according to what is required to repair monetary policy transmission. Over the coming weeks, we will design the appropriate modalities for such policy measures. 00:00:54
10:01:25 Cutaway of the audience 00:00:04
10:01:29 Soundbite by Mario Draghi (in ENGLISH): We have discussed possible reductions in interest rates, but the Governing Council in its entirety decided that this was not the time, and that’s it. 00:00:13
10:01:43 Cutaway of the audience 00:00:03
10:01:47 Soundbite by Mario Draghi (in ENGLISH): The guidance that we have given to the committees of the ECB differs from the previous programme, because that is basically what your first question is about. We have explicit conditionality here – as a necessary condition, adherence by the governments, and by those governing the euro area, to their commitments. 00:00:21
10:02:08 Soundbite by Mario Draghi (in ENGLISH): It is not up to us to give a banking licence; it is up to the governments. It is up to the ECB to decide whether the ESM, even with a banking licence, can actually be a suitable counterparty eligible for being financed. As said already twice, the current design of the ESM does not allow to be recognised as a suitable counterparty. 00:00:30
10:02:39 Cutaway of the audience 00:00:03
10:02:43 Soundbite by Mario Draghi (in ENGLISH): The endorsement to do whatever it takes – again, to use the same words – whatever it takes to preserve the euro as a stable currency has been unanimous. But, it’s clear and it’s known that Mr Weidmann and the Bundesbank – although we are here in a personal capacity and we should never forget that – have their reservations about programmes that envisage buying bonds, so the idea is now we have given guidance, the Monetary Policy Committee, the Risk Management Committee and the Market Operations Committee will work on this guidance and then we’ll take a final decision where the votes will be counted. But so far that’s the situation; I think that’s a fair representation of our discussion today. 00:00:53
10:03:36 Cutaway of the audience 00:00:04
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