|Draghi lifts euro zone outlook for 2014 and keeps all policy options open to support slow recovery
European Central Bank president Mario Draghi said in Frankfurt, Germany today, the central bank’s monetary policy makers expect continuing low inflation and that it will hold below the 2 percent target over the next couple of years.
Draghi also added that the recovery in the euro zone in 2014 and 2015 will proceed at a slow pace.
The ECB today raised its economic growth forecast to 1.1 percent for 2014 and predicted 1.5-percent growth the following year.
“Compared with the September 2013 ECB staff macroeconomic projections, the projection for real GDP growth for 2013 has remained unchanged and it has been revised upwards by 0.1 percentage point for 2014,’’ the ECB statement said.
Draghi said the ECB had maintained its forecast that the 17-member euro zone economy would shrink by 0.4 percent this year.
Once again, Draghi reiterated that the ECB is “ready to consider all available instruments,'' to prop up the euro zone economy.
Earlier, the ECB held its key interest rate at a record low of 0.25 percent.—The Standard/AFP