All data is delayed
See More

ECB still sees risks to economic recovery

Apr 04 2012 15:01
Frankfurt - There is a risk economic stabilisation in the eurozone could falter while prices are not likely to fall below their 2% inflation target until next year, the European Central Bank (ECB) said on Wednesday.

“The economic outlook remains subject to downside risks,” ECB president Mario Draghi said, reading the central bank’s opening statement after it held interest rates at a record low of 1.0%.

“Downside risks to the economic outlook prevail,” he said.

The ECB kept its economic assessment largely similar to the previous month, after several months of tweaking the language in a brighter direction.

Draghi also said the Governing Council views medium-term inflation risks as balanced, but with more danger of a rise than a fall this year. The central bank aims to keep inflation at just below 2% but has overshot the target for 16 months in a row.

The opening statement also said the ECB’s non-standard measures - which include handing banks 1 trillion euros in three-year loans - are temporary, but made no mention of when they would be phased out.

Bundesbank President Jens Weidmann has pushed for the ECB to start discussing an exit from these measures.


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills..

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote