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-074418   Duration: 10:03:39  Lieu:
End production: 06/09/2012   First transmission: 06/09/2012
On 6 September 2012, Mario Draghi, President of the European Central Bank (ECB), gave a press conference following the Governing Council of the ECB, in Brussels. As expected by financial analysts, the Governing Council of the 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 0.75%, 1.50% and 0.00% respectively. The bank also agreed on a new bond-buying plan aimed at easing the debt crisis in the euro area. The ECB wants help cut the borrowing costs of debt-burdened euro area members by buying their bonds.

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TIME DESCRIPTION DURATION
10:00:00 Title 00:00:15
10:00:15 Arrival of Mario Draghi, President of the European Central Bank (ECB), at the press conference following the Governing Council of the European Central Bank 00:00:11
10:00:26 Soundbite by Mario Draghi (in ENGLISH) on the key ECB interest rates, reading the bank's statement: Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. Owing to high energy prices and increases in indirect taxes in some euro area countries, inflation rates are expected to remain above 2% throughout 2012, to fall below that level again in the course of next year and to remain in line with price stability over the policy-relevant horizon. 00:00:32
10:00:59 General view of the press conference with Mario Draghi 00:00:04
10:01:03 Soundbite by Mario Draghi (in ENGLISH) still reading the bank's statement: A renewed intensification of financial market tensions would have the potential to affect the balance of risks for both growth and inflation. It is against this background that the Governing Council today decided on the modalities for undertaking Outright Monetary Transactions (OMTs) in secondary markets for sovereign bonds in the euro area. As we said a month ago, we need to be in the position to safeguard the monetary policy transmission mechanism in all countries of the euro area. 00:00:42
10:01:46 Soundbite by Mario Draghi (in ENGLISH) being asked whether the vote was unanimous today: It was not unanimous. There was one dissentive view. Details of ECB workings are not disclosed. 00:00:27
10:02:14 Soundbite by Mario Draghi (in ENGLISH): We will do whatever it takes within our mandate to have a single monetary policy in the euro area, to maintain price stability in the euro area and to preserve the euro. We say that the euro is irreversible. Unfounded fears of reversibility are just what they are, unfounded fears. 00:00:34
10:02:48 General view of the press conference with Mario Draghi 00:00:05
10:02:54 Soundbite by Mario Draghi (in ENGLISH): We are sure that we are acting within our mandate and are not violating article 1.23. It says explicitly that it is a violation for purchase on the primary market, not for purchases on the secondary market. Just incidentally, outright purchases of bonds are conceived, identified in the article 18 of the ECB statute, amongst the various possible tools of the bank's monetary policy. So, we are not creating here any new thing. 00:00:44
10:03:39 General view of the press conference with Mario Draghi 00:00:04
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