ECB: meeting and press conference
The European Central Bank, as expected, left its benchmark rate unchanged at 0.25%.
EUR/USD slid back to $1.3550.
Here are the essentials of Mario Draghi’s press conference:
- The ECB firmly confirmed its forward guidance
- Growth risks are on the downside
- Monetary policy will remain accommodative for as long as needed
- Underlying price pressures are expected to remain subdued
- May experience a prolonged period of low inflation followed by a gradual movement towards just under 2%
- 2 things can make the ECB act: 1) rising money market rates 2) a change in medium-term outlook for inflation
- The ECB considers the present market developments OK
- Low euro zone’s inflation in December was due to German data