Draghi expects EU recovery to start later in the year

FXstreet.com (Barcelona) - During the second part of ECB chief Mario Draghi's hearing before the European Parliament on Monday, the central bank head reiterated that the monetary policy would remain accomodative for as long as necessary and interest rates would be kept low for an extended period of time.

Even though the situation in the Eurozone hasn't stabilized yet and downside risks to the economic outlook remain, the ECB sees a gradual recovery in the second part of 2013. A solid banking system is crucial for supporting it.

Draghi remarked that ECB's monetary policy helped stabilize financial conditions in the Eurozone. Meanwhile, EU national governments' actions boosted confidence in the area and sentiment indicators have been improving of late.