The last ECB Press conference was on 5th Dec 2013.Following are the important point(s) in the ECB Press conference:
- No change in Interest rate, keep same 0.25%
- Euro area Inflation was 0.9%, from 0.75%in October and 2015 estimated 1.5% Inflation rate .just below target of 2%.
- ECB, ready for Interest rate cut for price stability
- Euro area GDP raise by 0.3% on 2nd Quarter, were 0.3% expected on 3rd quarter.
- Euro economic condition may affect by higher commodity price, weaker than expected domestic demand and export growth.
Draghi said that,17-nation Eurozone is recovering from recession, no sign of Deflation and some countries are showing signs of economic recovery, so no need of policy change. Interview with German daily Der Spigel on Dec 2013.
Euro area economic recovery is fragile, inflation has gone low up to 0.7%, and however it is expected to remain subdued for prolonged period. Over medium and longer term inflation expectation are in line with ECB estimates. Today reading 0.8% inflation is confirming this outlook of ECB. This may lead to standstill for EBC tomorrow.
Policy stand will remain accommodative for prolonged period, interest rates will remain low till inflation expectations remain low. Non-standard measures will remain in place for better transmission of policy. This may help liquidity for longer period of time.