The European Central Bank will keep monetary policy loose for as long as it takes to push ultra-low inflation in the euro zone back up closer to the two percent level, its president Mario Draghi said on Wednesday.
With data showing the single currency zone’s economy having ground to a halt in the second quarter, Draghi told French radio the ECB would do all in its power to stimulate growth but reaffirmed that euro zone countries needed to make their economies fitter.
“Monetary policy will remain accommodative for a long time and I can tell you that the (ECB) Governing Council is unanimous in committing itself to using the tools at its disposal to bring inflation back to just under two percent,” Draghi, speaking through an interpreter, told Europe 1 radio.
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Referring to signs of growth elsewhere in the world economy, he said ECB policy would remain accommodative even “while other countries’ monetary policy may gradually acknowledge recovery is taking place”.
Draghi has in recent days signaled the bank was ready to use additional unconventional tools to spur inflation and growth. He gave no information of these, but noted: “Interest rates will remain low because they can’t get much lower.”