The ECB maintains stimulus and Draghi says critics should “be patient” – Ambito.com

The European Central Bank (ECB) left unchanged on Thursday its monetary policy ultraexpansiva, such as planned, while the president of the agency, Mario Draghi, said the critics of his stimulus plan, which had to be patient and wait for the recovery of the euro zone is secure.

In a statement, reiterating its guidance, the agency said the rates would be maintained at their current levels or that it would remain low for an extended period of time and is also willing to increase or lengthen the term of its asset purchases if the economic outlook deteriorate.

“The recovery of the whole euro area is in everybody’s interest, including Germany”, said Draghi in a press conference, in response to criticism, particularly in Berlin, against his program of stimuli.

“German savers have benefited not just as savers, but as borrowers, entrepreneurs, workers, like any other citizen of the euro zone. So we have to be patient. As the recovery claims, real rates will go up,” he said.

Draghi said the recovery in the euro zone is being “affected by the slow pace of structural reforms,” and insisted that it needed a “very substantial” monetary stimulus.

The euro fell on Thursday to a minimum of sign of u$ s 1,0607, after Draghi said that the inflation pressures underlying are contained and that, once they pass the effects of the rise in crude oil prices, there would be no real signs of an upward trend.

even Though the president of the ECB warned that the global risks to the economy of the euro zone still remained to the poor, said it was too early to assess the impact of the exit plan of the United Kingdom of the European Union.

The recovery of the euro zone still depends heavily on the stimulus of the ECB and the markets might plunge in volatility if the Federal Reserve continues to increase interest rates, which highlights the divergence of strategies for monetary between Europe and the united States.

that Said, the inflation reached a peak of three years ago last month, manufacturing activity is accelerating and confidence indicators are taking hold, which points to a solid growth at the end of last year.

In fact, the growth of business activity in the euro area accelerated in December to its fastest pace in more than five years, the orders are increasing with the demand of export and the consumption is maintained despite the rising costs of energy, showing a kind of strength not seen since before the debt crisis of the block.

Even so, the underlying indicators are mixed. inflation is still located just in the middle of the target ECB close to 2% and the progress registered recently is due in large part to the rebound of oil prices.