World

ECB keeps interest rates unchanged

Name: ECB keeps interest rates unchanged
Uploaded: 2019-06-07T04:33:10.497Z
Duration: 1 min 32 s
Channel: Financial Times
Description: Mario Draghi says trade wars and political uncertainty will weigh on eurozone economy

The European Central Bank pledged to keep its interest rates at their current, record-low level at least through the first half of 2020, but warned that trade wars and geopolitical uncertainty could pull down the region’s economy

June 7, 2019

Footage by Reuters.

Transcript

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We decided to keep the key ECB interest rates unchanged. We now expect them to remain at their present levels at least through the first half of 2020. And in any case, for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below but close to 2 per cent over the medium term.

Incoming economic data and survey information point to somewhat weaker growth in the second and third quarters of this year. And this reflects the ongoing weakness in international trade in an environment of global uncertainties, prolonged global uncertainties, which are weighing in particular on the euro area manufacturing sector. Despite the somewhat better than expected data for the first quarter, the most recent information indicates that global headwinds continue to weigh on the euro area outlook. The prolonged presence of uncertainties related to geopolitical factors, the rising threat of protectionism, and vulnerabilities in emerging markets is leaving its mark on economic sentiment.