European Central Bank President Mario Draghi said today that the euro zone's economy appears to be stabilizing but inflation risks were not currently materializing as a large output gap remained.
ECB President Mario Draghi said today that the euro zone inflation outlook did not warrant a retreat from loose monetary policy given the poor state of the bloc's economy.
Tentative signs of stabilisation in the euro zone economy remained over the past month but uncertainty remains high, European Central Bank President Mario Draghi said today after the ECB held interest rates at a record low of 1.0 percent.
Banks grabbed 530 billion euros at the European Central Bank's second offering of cheap three-year funds today, fuelling hopes that more credit will flow to businesses and government borrowing costs will ease further.
The European Central Bank lowered its euro zone growth forecast after holding interest rates at record lows today, and said things would have been much worse without its dramatic action to pump a trillion euros into the banking system.
US Treasury Secretary Timothy Geithner threw his weight behind a Franco-German plan to tackle the euro zone's sovereign debt crisis and said the European Central Bank had to play a major role in any solution.
European finance ministers discussed ways of boosting IMF resources to build a better firewall against the debt crisis today, while also assessing plans for tighter euro zone fiscal rules that they hope will prevent the problems from worsening.
The European Central Bank's loans to banks have averted a major credit crunch but credit remains seriously impaired in parts of the euro area, ECB President Mario Draghi said at the World Economic Forum in Davos.
The current and incoming head of the European Central Bank demanded that European governments quickly implement a strengthening of a regional bailout fund and press ahead with wider reforms.
The European Central Bank cut its main interest rate by 25 basis points to 1.25 percent as the euro zone's worsening debt crisis outweighed the concern over persistently high inflation.
European Central Bank chief Mario Draghi told euro zone governments to act fast to get their rescue fund up and running, expressing exasperation at their lack of progress in response to an escalating debt crisis.