Mario Draghi, President of the European Central Bank (ECB), held a press conference following the ECB Governing Council meeting on 7 February 2013 in Frankfurt.
He explained that 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.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior view of the European Central Bank (ECB)
||Arrival of Mario Draghi, President of the ECB (2 shots)
||SOUNDBITE by Mario Draghi (in ENGLISH): Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. HICP inflation rates have declined further, as anticipated, and are expected to fall below 2% in the coming months. Over the policy-relevant horizon, inflationary pressures should remain contained
||Cutaway of the audience
||SOUNDBITE by Mario Draghi (in ENGLISH): The economic weakness in the euro area is expected to prevail in the early part of 2013. In particular, necessary balance sheet adjustments in the public and private sectors will continue to weigh on economic activity. Later in 2013 economic activity should gradually recover, supported by our accommodative monetary policy stance.
||Cutaway of a cameraman
||SOUNDBITE by Mario Draghi (in ENGLISH): In order to sustain confidence, it is essential for governments to reduce further both fiscal and structural imbalances and to proceed with financial sector restructuring.
||SOUNDBITE by Mario Draghi (in ENGLISH): With regard to the liquidity situation of banks, counterparties have so far repaid 140.6 billion euro of the 489.2 billion euro obtained in the first of the two three-year longer-term refinancing operations (LTROs) settled in December 2011 and March 2012.
||General view of the press room
||SOUNDBITE by Mario Draghi (in ENGLISH): The economic analysis indicates that price developments should remain in line with price stability over the medium term. A cross-check with the signals from the monetary analysis confirms this picture. As regards other policy areas, structural reforms and fiscal adjustment can complement each other, thereby improving the outlook for job creation, economic growth and debt sustainability.
||General view of the audience
||SOUNDBITE by Mario Draghi (in ENGLISH): Past policy action is bearing fruit, in terms of both the unwinding of existing fiscal imbalances and the reduction of current account deficits. In particular, in several countries with particular adjustment needs, contained growth in unit labour costs signals greater price competitiveness and exports are performing better. Governments should build on the progress achieved in fiscal consolidation, strengthen competition in product markets and continue with labour market reforms.
||Mario Draghi leaving the press room