ECB to stand by accomodative monetary policy to spur recovery

FXstreet.com (Barcelona) - The ECB Governing Council once again decided to maintain the main interest rate at 0.75% at their April monetary policy meeting and refrained from introducing any new measures to boost the economy.

During the press conference following the meeting ECB president Mario Draghi said that inflation declined further in the first quarter of 2013, as expected, and that inflationary pressures should remain contained over the medium term. Meanwhile, economic activity in the Eurozone continues to be weak and that this weakness has spread to previously unaffected countries. Nevertheless, economic activity should recover gradually in the second half of the year. That is why the ECB will maintain its accomodative monetary policy for as long as necessary.

Mario Draghi reminded that the ECB cannot fight the crisis on its own and that EU Member States should carry on with structural reforms in order to stimulate competitiveness and growth and reduce deficits.

During the Q&A part of the press conference the ECB president commented on the recent decision to bail-in depositors in Cyprus as part of the aid deal with international lenders, saying that it will not be used as a template for other Eurozone countries.