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European Central bank chose to keep policy unchanged, however pushed Euro down with its outlook and views. Euro is down from 1.123 against Dollar, before press conference to 1.115 as of now.
Key highlights
- Weaker recovery and slower increase in inflation than earlier expectations. According to ECB, more recently, downside risks have renewed to both growth and inflation.
- Governing council members are keeping close watch in financial market development, especially stability, lower commodities and oil price for its impact on price stability.
- Slowdown in emerging markets is being considered as considerable risk to Euro area growth and exports.
- Necessary balance sheet adjustment in some sectors remaining a drag to domestic demand as well as sluggish pace of structural reform.
- Stronger Euro have dampening effect of inflation as oil price is low.
Overall European Central Bank (ECB) policymakers stand ready to act if further downside risk to price stability materializes.
