FXStreet (Córdoba) – The ECB’s asset-purchase scheme is running smoothly, and will keep running until September 2016, or at least until inflation is back on target, ECB President Mario Draghi said in a press conference following the bank’s decision to keep monetary policy unchanged.
He stated that the evidence the ECB received since their last meeting in June has been broadly in line with expectations. “Recent developments in financial markets, which partly reflect greater uncertainty, have not changed the Governing Council’s assessment of a broadening of the euro area’s economic recovery and a gradual increase in inflation rates over the coming years”, he said.
The downside risks surrounding the economic outlook for the euro area have generally been contained as a result of ECB monetary policy decisions, says Draghi, as well as oil price and exchange rate developments.
Draghi said that monetary policy needs to maintain a steady course and that the full implementation of all monetary policy measures will provide the necessary support to the economic recovery and lead to a sustained return of inflation rates close to target of 2.0% in the medium term.
ECB raised ELA ceiling for Greek banks
Draghi said the ECB raised Greek emergency liquidity assistance (ELA) on Thursday as they operate under the assumption that Greece will remain in the eurozone. However, he said that liquidity aid never meant to be unlimited and unconditional.
Draghi confirmed the Greek ELA limit was raised by €900 million over one week as required conditions have been restored. He commented that the ECB’s total exposure to Greece stands at € 130 billion.
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