Investing.com - The European Central Bank did not discuss extending its quantitative easing program beyond March 2017 despite a small downward revision to its growth forecast, President Mario Draghi said Thursday.
The ECB raised its 2016 growth forecast to 1.7% from 1.6%, but slightly lowered its 2017 forecast from 1.7% to 1.6%.
Draghi said current monetary policy is effective and the changes to the banks growth forecast are not so substantial as to warrant a decision to act.
He reiterated that there should be no doubt about the ECB’s will, capacity or ability to take further action if needed.
Draghi confirmed that the ECB will run its monthly asset-purchase program until March 2017 or beyond if needed, until “a sustained adjustment in the path of inflation” has been achieved.
The ECB expects the euro area economy to continue to grow at a “moderate, steady pace” and also sees a gradual increase in inflation.
Draghi warned that the euro zone recovery will be “dampened” by subdued by foreign demand arising in part from “uncertainty” following the vote by the U.K. to exit the European Union.
The ECB chief confirmed that the bank interest rate at a record-low 0.0%, in line with market expectations. The central bank also kept its deposit rate and its marginal lending rate unchanged.
He said interest rates would remain at present or lower levels for an “extended time” so that the economic recovery isn’t derailed.