FRANKFURT (MNI) – The European Central Bank’s Governing Council
discussed an interest rate cut at its August meeting but decided now is
not the time, ECB President Mario Draghi said Thursday.
The ECB left its main refinancing rate unchanged at 0.75% and left
its deposit and marginal refinancing rates unchanged, as well. But
Draghi revealed at the press conference that they did consider lower
rates, but unanimously decided against any move.
“We have discussed possible reductions in interest rates, but the
Governing Council in its entirety decided that this was not the time.
And that’s it,” Draghi said.
Draghi declined to be drawn on the question of setting a negative
deposit rate. “On the negative deposit rate … for us these are largely
unchartered waters,” he said.
In his opening statement Draghi painted a picture of diminishing
price pressures, saying monetary expansion was subdued and inflation
should slow further. He said the ECB expects the euro area economy to
recovery only very gradually, dampened by sovereign debt tensions.
–London newsroom: 4420 7862 7495; email: ukeditorial@marketnews.com
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