The Latest: ECB ready to act if economy runs into trouble
FRANKFURT, Germany (AP) — The Latest on the European Central Bank (all times local):
European Central Bank head Mario Draghi says the bank is ready to “adjust all of its instruments” if the economy runs into serious trouble and said risks “have moved to the downside.”
Draghi spoke after the bank left its key interest rates and other policy settings unchanged despite worries about Brexit and U.S.-China trade conflict.
Draghi said a strong labor market was still supporting the economy. He said the economy still needs monetary stimulus and that the bank would not raise interest rates from record lows until at least through the summer.
The European Central Bank has kept its key interest rates and future policy views unchanged despite the worries about Brexit and trade wars stalking the eurozone and global economy.
The bank’s 25-member governing council didn’t touch the wording of its brief policy statement promising rates will stay at record lows at least through the summer. The statement also says the bank won’t withdraw any of its stimulus from previous bond purchases until long after rates start going up.
Bank president Mario Draghi said Jan. 15 that despite a recent weakening, the eurozone economy is “not heading towards a recession” and growth could last longer than expected. Investors are waiting to hear his updated view at a post-decision news conference.