21 Nov 2013
ECB's Draghi dismisses negative deposit rate prospects, euro higher
FXstreet.com (Barcelona) - ECB head Mario Draghi, who appeared today at an an event organized by the German newspaper Sueddeutsche Zeitung, declined to comment on the possibility of introducing negative deposit rates.
“This was discussed in the last monetary policy meeting and there are no news since then," Draghi assured, referring to his comment at the press conference suggesting that the central bank was “technically ready” to take the deposit rate into negative territory, should the state of the economy require it.
Furthermore, the ECB president said that the recovery in the Eurozone was advancing, although it remained “weak, uneven and fragile” and would not stabilize unless price stability in the area was achieved. Risks for the economic outlook are still on the downside, he emphasized.
Draghi also reminded that monetary policy alone couldn't stabilize the situation in the Eurozone and urged EU governments not to ease up on the reform programs.
The EUR/USD jumped to a daily high of 1.3476 on Draghi's comments.
“This was discussed in the last monetary policy meeting and there are no news since then," Draghi assured, referring to his comment at the press conference suggesting that the central bank was “technically ready” to take the deposit rate into negative territory, should the state of the economy require it.
Furthermore, the ECB president said that the recovery in the Eurozone was advancing, although it remained “weak, uneven and fragile” and would not stabilize unless price stability in the area was achieved. Risks for the economic outlook are still on the downside, he emphasized.
Draghi also reminded that monetary policy alone couldn't stabilize the situation in the Eurozone and urged EU governments not to ease up on the reform programs.
The EUR/USD jumped to a daily high of 1.3476 on Draghi's comments.