ECB Press conference highlights
European Central Bank President Mario Draghi spoke at a news conference just minutes after the central bank cut its benchmark rate by 25 basis points to 0.75%. The bank also cut its its deposit facility to 0%.
Speaking at the news conference, Mario Draghi said the Governing Council did not discuss any additional measures at today’s meeting such as LTROs. He also said financial tensions were a little more relaxed now compared to a month ago. When asked about the ESM and whether this could be boosted by the ECB, Draghi said that at the moment the EFSF and ESM current capabilities are adequate and there was no scope in destroying its credibility by asking it to behave outside its limits. About inflation, he said it is expected to fall below its target of 2% in 2013c or perhaps before. Furthermore he said he sees no signs of deflation.
Growth remains weak and is set to weaken in basically all the euro area, said Draghi, and added that heightened uncertainty was weighing on confidence. Finally, he also said the economic outlook continue to be on the downside.
EUR/USD fell to a session low by 1.2364, from 1.2514 just before the ECB announced its interest rate decision to slash its rates.
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