ECB keeps stimulus pledge despite stronger growth

ECB keeps stimulus pledge despite stronger growth

Draghi: 'We aren't where we want to be yet'

European Central Bank President Mario Draghi is seen after a news conference at the ECB headquarters in Frankfurt on Thursday. (Reuters photo)
European Central Bank President Mario Draghi is seen after a news conference at the ECB headquarters in Frankfurt on Thursday. (Reuters photo)

FRANKFURT - The European Central Bank reaffirmed its ultra-easy policy stance on Thursday and even kept the door open to boosting its bond purchases if needed, despite an upswing in the euro zone's economy.

The ECB kept rates at record low and confirmed its asset-buying programme would continue at €60 billion (US$69.15 billion) per month at least until December and could be expanded or extended if deemed necessary.

Investors have been looking for hints that the ECB may start reducing the scheme since President Mario Draghi said late last month that policy tweaks were possible to accompany the euro zone's economic recovery.

The ECB also kept its rate on bank overnight deposits, which is currently its primary interest rate tool, at -0.40%, as expected.

The main refinancing rate, which determines the cost of credit in the economy, was unchanged at 0.00% while the rate on the marginal lending facility -- or emergency overnight borrowing rate for banks -- remains at 0.25%.

ECB President Mario Draghi that inflation, the target of much of the stimulus, was not where the ECB wanted it to be.

"We need to be persistent and patient because we aren't there yet," he told a news conference.

"We also were unanimous in communicating no change to the forward guidance and also we were unanimous in setting no precise date for when to discuss changes in the future -- in other words, we simply said that our discussions should take place in ... the autumn."


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