Euro at 27-month low after ECB meeting
The euro plunged to a 27-month low on Thursday after European Central Bank President Mario Draghi’s press conference. Rumours of his downfall were quickly dispersed as the central bank chief doused concerns about his leadership style. Leading up to the ECB decision there was a media report which showed discontent amongst Eurozone central bankers with regards to his leadership.
Draghi however talked of how unanimous the ECB Governing Council was with matters on the Bank’s stimulus measures the amount of money the bank aimed to pump into the Eurozone economy. Draghi pointed out that the ECB stands ready to take more policy action if needed. In his press conference Draghi said that differences among central bankers were to be expected.
The ECB chief said risks to the euro zone’s recovery remained skewed to the downside and ECB and national central banks’ staff had been tasked with “ensuring the timely preparation of further measures to be implemented if needed”.
“The Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate,” Draghi remarked.
The ECB announced after its monthly meeting that it kept interest rates at a record low 0.05 percent. It signaled it would wait to see how measures already in place will unfold. The ECB has started pumping more money into the Euro area banking system through purchases of private debt and offers of long-term loans, aiming to boost its balance sheet by up to 1 trillion euros.
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