By CentralBankNews.info
The European Central Bank (ECB), which earlier today left its benchmark refinancing rate at a record low of 0.25 percent, is ready to use “unconventional instruments” and further rate cuts to tackle the risk of inflation remaining too low for a long period of time.
“We are resolute in our determination to maintain a high degree of monetary accommodation and to act swiftly if required,” ECB President Mario Draghi told a press conference, sharpening the central bank’s forward guidance about its intended monetary policy.
“Hence, we do not exclude further monetary policy easing and we firmly reiterate that we continue to expect the key ECB interest rates to remain at present or lower levels for an extended period of time,” Draghi said, adding:
“The Governing Council is unanimous in its commitment to using also unconventional instruments within its mandate in order to cope effectively with risks of a too prolonged period of low inflation.”
In his prepared statement, Draghi did not provide any details of the type of monetary tools that the ECB is considering using to further boost inflation, which has remained below 2 percent for 14 months.
In March inflation in the 18-nation euro zone fell to 0.5 percent from 0.7 percent in February. The ECB targets inflation of close to but below 2 percent.
