On 2 May 2013, Mario Draghi, President of the ECB, gave a press conference following the ECB Governing Council meeting. The Governing Council of the ECB took the following monetary policy decisions: The interest rate on the main refinancing operations of the Eurosystem will be decreased by 25 basis points to 0.50%, starting from the operation to be settled on 8 May 2013; The interest rate on the marginal lending facility will be decreased by 50 basis points to 1.00%, with effect from 8 May 2013; The interest rate on the deposit facility will remain unchanged at 0.00%.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of Mario Draghi, President of the European Central Bank (ECB), at the press conference (2 shots)
||Soundbite by Mario Draghi (in ENGLISH): based on our regular economic and monetary analyses, we decided to lower the interest rate on the main refinancing operations of the Eurosystem by 25 basis points to 0.50% and the rate on the marginal lending facility by 50 basis points to 1.00%. The rate on the deposit facility will remain unchanged at 0.00%.
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||Soundbite by Mario Draghi (in ENGLISH): Inflation expectations for the euro area continue to be firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2% over the medium term. In keeping with this picture, monetary and loan dynamics remain subdued. At the same time, weak economic sentiment has extended into spring of this year. The cut in interest rates should contribute to support prospects for a recovery later in the year.
||General view of the press briefing
||Soundbite by Mario Draghi (in ENGLISH): The Governing Council decided to start consultations with other European institutions on initiatives to promote a functioning market for asset-backed securities collateralised by loans to non-financial corporations. In the meantime, it is essential for governments to intensify the implementation of structural reforms at national level, building on progress made in fiscal consolidation and proceeding with bank recapitalisation where needed.
||Cutaway of the audience
||Soundbite by Mario Draghi (in ENGLISH): Real GDP contracted by 0.6% in the fourth quarter of 2012, following a decline of 0.1% in the third quarter. Output has thus declined for five consecutive quarters. Overall, labour market conditions remain weak. Recent developments in short-term indicators, notably survey data, indicate that weak economic sentiment has extended into spring of this year.
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||Soundbite by Mario Draghi (in ENGLISH): In order to ensure adequate transmission of monetary policy to the financing conditions in euro area countries, it is essential that the fragmentation of euro area credit markets continues to decline further and that the resilience of banks is strengthened where needed. Progress has been made since last summer in improving the funding situation of banks, in strengthening the domestic deposit base in stressed countries and in reducing reliance on the Eurosystem as reflected in repayments of the three-year LTROs.
||General view of the press conference
||Soundbite by Mario Draghi (in ENGLISH): Further decisive steps for establishing a banking union will help to accomplish this objective. In particular, the Governing Council emphasises that the future Single Supervisory Mechanism and a Single Resolution Mechanism are crucial elements for moving towards re-integrating the banking system and therefore require swift implementation.
||Departure of Mario Draghi