ECB statement - Press Conference highlights

As broadly anticipated, the European Central Bank kept its monetary status quo unchanged at today’s meeting, leaving the interest rate on the main refinancing operations at 0.00%, the interest rate on the marginal lending facility at 0.25% and the deposit facility at -0.40%.

The ECB continues to see the interest rates at present levels (the ECB removed ‘or lower’) for an extended period of time and beyond the net assets purchases.

Regarding the ‘quantitative easing’ programme, the central bank sees it running until December 2017 or further in case of need and/or as long as inflation figures show a sustained convergence to the central bank’s target.

The ECB emphasized the stronger momentum in the economy of the region and now expects it to expand faster than previously estimated. Furthermore, the ECB now considers that ‘risks to the growth outlook are now broadly balanced’ (this is another change vs. the previous statement). The GDP in the euro region is now seen expanding 1.9% in 2017, 1.8% in 2018 and 1.7% in 2019.

Regarding inflation, the ECB revised its forecasts to1.5% this year, 1.3% in 2018 and 1.6% in 2019, all in response to lower energy prices.

The central bank said M3 expansion remains on track, while loan growth is extending its up trend.

At the subsequent Q&A session, Draghi said the Governing Council did not discuss any tapering of the current monetary conditions, adding that only two members expressed observations on the matter. Draghi also reiterated that further structural reforms are still much needed.