As part of the most important changes to the introductory statement, the ECB signalled downside risks to the recovery expected in H213, whereas last month a “stabilisation” in economic indicators was still observed, albeit at low levels. As a result, the ECB will “monitor very closely all incoming information on economic and monetary developments and assess any impact on the outlook for price stability”, adding that the “monetary policy stance will remain accommo-dative for as long as needed” [terms in italic highlight changes from last month]. During the Q&A session, Draghi said that there had been an “extensive discussion” on policy options and that the ECB ―stands ready to act‖.- The ECB‘s press conference was consistent with additional monetary easing to come in the next few months. Risks to the recovery have increased, inflation is falling further below the 2% target and monetary transmission remains impaired. The ECB ―stands ready to act‖.
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Credit Agricole