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| Version 1 | Version 2 |
|---|---|
| ECB to leave interest rates low for 'extended period' | ECB to leave interest rates low for 'extended period' |
| (35 minutes later) | |
| The European Central Bank (ECB) president, Mario Draghi, says that eurozone interest rates will remain low for an extended period. | The European Central Bank (ECB) president, Mario Draghi, says that eurozone interest rates will remain low for an extended period. |
| Mr Draghi also said they could fall to even lower levels. | Mr Draghi also said they could fall to even lower levels. |
| His comments followed the ECB's regular meeting at which it kept rates unchanged at a barely perceptible 0.05% in the face of near-zero inflation. | His comments followed the ECB's regular meeting at which it kept rates unchanged at a barely perceptible 0.05% in the face of near-zero inflation. |
| The overnight deposit rate was left at -0.3%. At the ECB meeting in December, this rate had been cut from -0.2%. | The overnight deposit rate was left at -0.3%. At the ECB meeting in December, this rate had been cut from -0.2%. |
| That move was an attempt to push banks to lend instead of parking money at the ECB. | That move was an attempt to push banks to lend instead of parking money at the ECB. |
| 'No limits' | |
| Mr Draghi told a news conference: "As we start the new year, downside risks have increased again amid heightened uncertainty about emerging market economies' growth prospects, volatility in financial and commodity markets and geopolitical risks." | |
| He said that could make it necessary to review - and possibly reconsider - monetary policy at the next meeting in early March. | |
| That meeting will have a new set of ECB macroeconomic projections to work with. | That meeting will have a new set of ECB macroeconomic projections to work with. |
| He said that the recent falls in the oil price meant that inflation was likely to be "significantly lower" compared with the outlook in early December. | |
| Eurozone inflation was below zero - that is, prices were falling - as recently as September, mainly due to falls in international energy prices, particularly crude oil. | Eurozone inflation was below zero - that is, prices were falling - as recently as September, mainly due to falls in international energy prices, particularly crude oil. |
| In December, Mr Draghi said that eurozone inflation was expected to reach 1% in 2016. However, the ECB's forecasts were based on the assumption of oil prices averaging more than $50 a barrel this year, and oil is currently below $30. | In December, Mr Draghi said that eurozone inflation was expected to reach 1% in 2016. However, the ECB's forecasts were based on the assumption of oil prices averaging more than $50 a barrel this year, and oil is currently below $30. |
| Mr Draghi said there were "no limits" as to how far it was prepared to go to raise eurozone inflation from its current rate of 0.2% to the ECB's target of near 2%. | |
| "We have the power, willingness and determination to act. There are no limits how far we are willing to deploy our policy instruments," he said. | |
| In December, the ECB had also extended its monthly €60bn stimulus programme by six months to March 2017. |