European Central Bank President Mario Draghi said he’ll keep interest rates low as officials try to revive the economy with their latest emergency measures.
“The key ECB interest rates will remain at present levels for an extended period,” Draghi said at a press conference in Frankfurt after policy makers left borrowing costs unchanged. “The combination of monetary policy measures decided last month has led to a further easing of the monetary policy stance. The monetary operations to take place over the coming months will add to this accommodation and will support bank lending.”
Draghi is pumping cash into the 18-nation currency bloc in an effort to bolster credit supply and boost inflation (ECCPEMUY) that is running at about a quarter of the ECB’s goal. While his comments today added details on benchmarks for linking liquidity injections to real-economy lending, doubts remain over how well the plan will work.