FRANKFURT: The European Central Bank approved a fresh stimulus package as expected on Thursday, cutting interest rates and approving a new round of bond purchases to prop up euro zone growth and halt a worrisome drop in inflation expectations.
Following are highlights of ECB President Mario Draghi’s comments at a press conference after the bank’s policy meeting.
ON THE ECB’S BASELINE SCENARIO
“… This baseline scenario is also relatively favourable. Because it doesn’t contain the case of a hard Brexit, for example, the probability of which has gone up over recent time.
“And it doesn’t contain some of the trade measures, trade escalation, at least, some of the trade escalation that has taken place since August. So in this – with this relatively favourable baseline scenario, there was a downgrade in inflation and inflation expectations. And so that is over the whole horizon. And that is what prompted the measures we have taken.”