The ECB leaves rates at a record low – The Messenger

E ‘slower than expected recovery in the Eurozone and the ECB cut its growth forecast. The Institute of Frankfurt while leaving rates unchanged at a record low of 0.05% and announces its readiness to use all the tools needed to support the economy.

The recovery will continue but at a slower pace than previously expected, said ECB President Mario Draghi at a press conference after the Governing Council of the central bank. The ECB has cut its estimates on Eurozone GDP to + 1.4% from + 1.5% to + 1.7% this year and by 1.9% next.

“The available information indicates a slower rise in inflation than previous estimates,” he then said ECB President, stressing however that “it is still too early to assess whether the developments” on oil prices “will have a lasting impact on prices “.

The ECB has therefore revised downward the estimate of inflation in the Eurozone even: now the cost of living is estimated for 2016 to 1.1% from 1.5% and for 2017 to 1.7% from 1.8%. For this year the estimate is instead reduced to 0.1% from 0.3% previously. “We could see negative numbers in inflation in the coming months but the ECB considers them transient because of low oil prices,” said the number one lead institution.

The Council of the ECB, said Dragons still, “underlines its willingness and ability to act, if necessary, using all the tools available within its mandate and, in particular, recalled that the program of asset purchases provides sufficient flexibility in terms of adjustment the size, composition and duration of the program. “

” In the meantime – added the president of the ECB – we will implement in full our monthly asset purchases by 60 billion euro. These purchases have a positive impact on the cost and availability of credit to businesses and households. They are destined to continue until the end of September 2016 or beyond if necessary, and in any case until we will see that inflation follows a path consistent with our goal of rates below, but close to 2% over the medium term ” .

The Council of the ECB has also decided to raise from 25% to 33% the limit on the amount of an issue of bonds purchased from Frankfurt.

“We are not there yet.” So the president of the ECB has also answered a question on the possibility of new measures to extend the range of the Quantitative easing. As the increase to 33% of the maximum quota of emission affordable dall’Eurotower “has been decided – he added – to carry out a smooth implementation of the program.”

The European Central Bank during the Eurogroup insisted so there was not a bail-in for Greece that involved depositors, yet Draghi said, adding that it would be counterproductive for the Greek economy.