Extracts from the press conference by Mario Draghi, President of the ECB, following the ECB Governing Council

Type: Summary of press conference   Reference: I-081952   Duration: 10:03:43  Lieu:
End production: 02/10/2013   First transmission: 02/10/2013
As foreseen by financial analysts, the Governing Council of the European Central Bank (ECB), meeting in Paris, 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 0.50%, 1.00% and 0.00% respectively. At his monthly press conference, Mario Draghi, President of the ECB reiterated the bank's earlier commitment to keeping rates at present or lower levels for an extended period of time. Asked about the US Federal Reserve's move, he told journalists that the bank was attentive to exchange rate developments.

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TIME DESCRIPTION DURATION
10:00:00 Title 00:00:05
10:00:05 Exterior view of the Banque de France in Paris 00:00:04
10:00:09 Arrival of Mario Draghi, President of the European Central Bank (ECB), at the press conference accompanied by Vítor Constâncio, Vice-President of the European Central Bank (ECB), and Christian Noyer, Governor of the Bank of France 00:00:13
10:00:23 General views of the press conference (4 shots) 00:00:18
10:00:42 Soundbite by Mario Draghi (in ENGLISH): Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. Incoming information and analysis have further underpinned our previous assessment. 00:00:18
10:01:00 Cutaway of the audience 00:00:02
10:01:02 Soundbite by Mario Draghi (in ENGLISH): The Governing Council confirms that it expects the key ECB interest rates to remain at present or lower levels for an extended period of time. This expectation continues to be based on an unchanged overall subdued outlook for inflation extending into the medium term, given the broad-based weakness in the economy and subdued monetary dynamics. 00:00:26
10:01:29 Cutaway of the audience 00:00:02
10:01:31 Soundbite by Mario Draghi (in ENGLISH): With regard to money market conditions, we will remain particularly attentive to developments which may have implications for the stance of monetary policy and are ready to consider all available instruments. 00:00:14
10:01:46 Cutaway of the audience 00:00:03
10:01:49 Soundbite by Mario Draghi (in ENGLISH): As you know, the exchange rate is not a policy target for the ECB. The target for the ECB is medium-term price stability. However, the exchange rate is important for growth and for price stability and we certainly pay close attention to these developments. 00:00:22
10:02:12 Cutaway of the audience 00:00:03
10:02:15 Soundbite by Mario Draghi (in ENGLISH): You are asking in an indirect way whether we discussed an interest rate cut which would narrow the corridor. There was a discussion and, as last time, some governors observed that improvements in the economy would not justify this discussion but other governors believed that the discussion was warranted. But in the end we decided to leave interest rates at the present level. 00:00:28
10:02:44 Journalist asking a question 00:00:05
10:02:49 Soundbite by Mario Draghi (in ENGLISH): But on the first question, I have my famous quote: “We are ready to use any instrument, including another LTRO if needed, to maintain the short-term money market rates at a level which is warranted by our assessment of inflation in the medium term.” This is about what I have said before – so, I do still remember things. It means in essence that we do not exclude any option and that we are ready to act accordingly and as needed. 00:00:29
10:03:19 Cutaway of the audience 00:00:04
10:03:24 Soundbite by Mario Draghi (in ENGLISH): Nobody wants to have a liquidity accident occurring between now and the recovery. And secondly, liquidity ought to be provided to the banking system as needed, but it should not be a substitute for a lack of capital. 00:00:19
10:03:43 Cutaway of the audience 00:00:03
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