- Mario Draghi, ECB President
The European Central Bank left its benchmark rates unchanged at their all-time lows for already the seventh consecutive rate-setting meeting. Mario Draghi, ECB President, said that low oil prices should boost private consumption and demand, and said that the weakness in the Euro is expected to support trade for Euro area countries. The ECB revised its inflation outlook, with consumer prices in the 19-nation bloc expected to climb 0.3%, 1.5% and 1.8% in 2015, 2016 and 2017, respectively. The gauge is seen staying low in the months ahead and accelerate its growth later in the year, Draghi said. Still, inflation is predicted to remain well below the central bank's target - close to, but below 2%. Meanwhile, the GDP growth projections remained virtually intact with the exception of 2017, for which the bank revised its outlook down by one notch. It said it expected increase in GDP by 1.5%, 1.9% and 2% in 2015, 2016 and 2017, respectively.
As in past press conferences, Draghi reiterated that for a broader turnaround in Euro area economies, structural fiscal reforms are required in order for companies and households to benefit from the ECB's current easy monetary policy stance. The central bank has confirmed that its QE programme will run through September 2016, and Draghi added that the ECB currently sees no reason to add to its QE programme.
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