Unchanged monetary policy of the European Central Bank – Prensa Latina

January 19, 2017 15:04Berlin, jan 19 (PL) The European Central Bank (ECB) kept today with no changes to its monetary policy, and asked for patience to observe the results, despite criticism by the excessive stimulus measures implemented by the institution.

The financial institution decided to maintain the main interest rate in the euro zone at a record low of zero percent; neither moved the types that penalize the deposits of the banks in the ECB, as the rate of the day-to-day will continue at -0,4 per cent.

While the rate of marginal loan, used by banks to borrow for 24 hours, will be continued at 0.25 percent, reported the institution.

this binds the continuity of the massive plan to purchase public and private debt until December 2017, although from April the monthly amount of the purchases will go down of 80 billion today to 60 billion.

‘I Am almost certain that there will come a time’ to reduce the numerous measures to support the european economy, said the president of the ECB, Mario Draghi, at a press conference from the German city of Frankfurt.

by then ‘we will open a discussion and a analysis very cautious of the situation, although we’re not there yet’ and the subject ‘has not been debated’ this Thursday, he said.

‘Tell you what I’ve been saying for months: the low rates are necessary to achieve high rates in the future and this monetary policy is beneficial for all. We have to be patient, when you have recovery, you will increase’, he said.

‘The monetary policy decisions of the month of December of the year 2016 have ensured a sustained convergence toward the inflation target (…) The situation has improved, but that does not mean that we can relax’, evaluated.

In December of 2016, the consumer prices in the euro area rose 1.1 percent in measuring year-on-year, following 0.6 percent in November, and will increase more in the coming months.

This mainly reflected a large increase in energy prices, because there is not a true sign of upward trend in underlying inflation, said the officer.

in Addition, ‘the risks associated with the global uncertainties’ are threatening the recovery in the euro zone, he said.

Again, Draghi called for structural reforms and fiscal policy to support economic growth in the euro area; ‘structural reforms are necessary to improve the business structure’, illustrated.

rc/mjm