8 Aug 2013
ECB Monthly Report: Rates will stay low for extended period of time
FXstreet.com (Barcelona) - In the August ECB Monthly Report the Governing Council reitrerated its intention to maintain interest rates at the current level of 0.5%, or lower, for “an extended period of time.” Monetary policy is to remain accomodative for as long as necessary in order to support the economic recovery which is expected to gradually progress for the rest of 2013 and in 2014.
“Inflation expectations for the euro area continue to be firmly anchored in line with the Governing Council’s aim of maintaining inflation rates below, but close to, 2% over the medium term,” the reports stated. It pointed to recent improvements in Eurozone confidence indicators and signalized that further economic and monetary developments would be closely observed for their potential influence on price stability.
The ECB sees several risks to the Eurozone economic recovery, namely the still uncertain situation in global financial markets, a potential weaker than projected global and domestic demand as well as the inability of EU governments to timely and consistently implement all the necessary reforms.
“Inflation expectations for the euro area continue to be firmly anchored in line with the Governing Council’s aim of maintaining inflation rates below, but close to, 2% over the medium term,” the reports stated. It pointed to recent improvements in Eurozone confidence indicators and signalized that further economic and monetary developments would be closely observed for their potential influence on price stability.
The ECB sees several risks to the Eurozone economic recovery, namely the still uncertain situation in global financial markets, a potential weaker than projected global and domestic demand as well as the inability of EU governments to timely and consistently implement all the necessary reforms.