FRANKFURT: The European Central Bank kept policy unchanged as expected, staying on course to claw back unprecedented stimulus even as the growth outlook continues to darken and political turmoil in Italy looms large over the currency bloc.
Having exhausted much of its firepower with years of support, the ECB reaffirmed that its 2.6 trillion euro ($2.97 trillion) asset purchase scheme will end this year and interest rates could rise after next summer, sticking to a guidance first unveiled in June and repeated at every meeting since.
Acknowledging a weaker recent momentum in the euro zone economy, ECB chief Mario Draghi reeled off what he called a “bunch of uncertainties” related to trade protectionism, emerging markets and financial market volatility.
“Is this enough of a change to make us change the baseline scenario? The answer is ‘No’,” he told an ECB news conference to justify its policymakers’ decision to maintain their judgment that risks remained “broadly balanced.” — Reuters
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