This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-36855978
The article has changed 5 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Financial markets have 'weathered' Brexit uncertainty | |
(35 minutes later) | |
Europe's financial markets have "weathered" the uncertainty caused by Britain's vote to leave the EU, according to the president of the European Central Bank (ECB). | |
Mario Draghi said markets had displayed "courage and resilience". | |
In its first rate meeting since Brexit, the ECB voted to leave key interest rates unchanged. | |
But Mr Draghi signalled the ECB was ready, willing and able to act to boost Europe's economy if needed. | |
The main interest rate has been held at 0% and the ECB said it expected rates to remain at record lows or fall to lower levels for an extended period of time. | |
The bank deposit rate was also maintained at minus 0.4%. A negative rate means banks must pay the ECB to park their cash and is designed to encourage them to lend. | The bank deposit rate was also maintained at minus 0.4%. A negative rate means banks must pay the ECB to park their cash and is designed to encourage them to lend. |
The ECB's stimulus programme, where it buys €80bn of bonds a month, has also been left unchanged and will run until March 2017 and beyond "if necessary". | The ECB's stimulus programme, where it buys €80bn of bonds a month, has also been left unchanged and will run until March 2017 and beyond "if necessary". |
'Grain of caution' | |
"Over the coming months when we have more information... we will be in a better position to reassess the underlying macroeconomic conditions," Mr Draghi added. | "Over the coming months when we have more information... we will be in a better position to reassess the underlying macroeconomic conditions," Mr Draghi added. |
"If warranted, to achieve its objective, the governing council will act by using all the instruments available in its mandate," he said. | |
Prior to the vote to leave the EU, Mr Draghi had speculated that an exit could cut eurozone growth by between 0.2% and 0.5% over three years. The European Commission had predicted an impact of between 0.25% and 0.5%. | |
However, on Thursday he said that the forecasts should be treated with a "grain of caution" because it will depend on negotiations between Britain and the EU and the outcome of those talks. | |
Mr Draghi said that he expected inflation expected to remain low in the coming months - it was 0.1% in June - before picking up later this year. |