BRATISLAVA (Reuters) - The European Central Bank cut interest rates for the first time in 10 months on Thursday, driven to act by an economy wallowing in recession and freed to do so by sharply falling inflation.
Following are comments by ECB President Mario Draghi at a post-meeting news conference.
“We would certainly look at all the incoming data ... As I said last time, we stand ready to act.”
“Looking ahead euro zone export growth should benefit from recovering global demand and our monetary policy stance should continue to support domestic demand. Furthermore the improvement in financial markets since last summer should work their way through to the real economy.
“At the same time, necessary balance sheet adjustments in the public and private sectors will continue to weigh on economic activity. Overall euro area economic activity should stabilize and recover gradually in the second half of the year.”
“The future single (banks) supervisory mechanism and single resolution mechanism are crucial elements to reintegrating the banking system ... and require swift implementation.”
“Monetary policy stance will remain accommodative for as long as needed ...
“We will monitor very closely all incoming information ... and assess any impact on the outlook for price stability.”
“Overall labor market conditions remain weak ... weak economic sentiment has extended into the spring of this year. The cut in interest rates should contribute to support a recovery later in the year.”
“Euro area export growth should benefit from a recovery in global demand ... the improvements in financial markets since last summer should work their way through to the real economy ... euro are economic activity should stabilize and recover gradually in the second half of the year. The risks ... continued to be on the downside.”
“We are closely monitoring money market conditions. In this context we decided today to continue conducting the main refinancing operations as fixed rate tender procedures with full allotment for as long as necessary and at least until the end of the sixth maintenance period of 2014 on 8th July.”
“Inflation expectations in the euro area continue to be firmly anchored.
“These decisions are consistent with low underlying price pressure in the medium term.”
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