European Central Bank chief Mario Draghi has kicked off his post-decision press conference with a dovish message: Rates are going to be this low, or lower, for “an extended time”.
It’s important to make sure low inflation does not lead to second-round effects, he added, warning that inflation rates “could turn negative again”.
He has also bemoaned the slow pace of structural reforms in the euro area, and the potential impact of weak growth in emerging markets. Risks are “tilted to the downside” he said.
Still, his words appear to have done nothing to fuel any further euro selling. It’s now 0.5 per cent higher at $1.1378.
