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ECB ready to come to eurozone economy's aid if needed: Draghi

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The European Central Bank is ready, willing and able to help put the eurozone economy back on its feet, if needed, but financial markets have held up so far to the shock of the Brexit referendum, president Mario Draghi said on Thursday.

[FRANKFURT] The European Central Bank is ready, willing and able to help put the eurozone economy back on its feet, if needed, but financial markets have held up so far to the shock of the Brexit referendum, president Mario Draghi said on Thursday.

"If warranted to achieve its objective, the governing council will act by using all instruments within its mandate. I would stress our readiness, willingness, ability to do so," Mr Draghi said.

He was speaking at a news conference held after the ECB opted to keep key interest rates unchanged at its policy meeting, despite the shock created by the British vote to quit the European Union.

Already, the ECB has rolled out a raft of different measures to help get the eurozone economy back on its feet.

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It has slashed interest rates to all-time lows, pumped vast amounts of liquidity into the financial system via cheap loan schemes to banks, and embarked on an asset purchase programme to try and drive up chronically low inflation in the single currency area.

Eurozone inflation stood at a mere 0.1 per cent in June, far below the level of just under 2.0 per cent that the ECB regards is conducive to healthy economic growth.

Mr Draghi said that financial markets had held up well to the shock of Brexit.

"After the UK referendum, euro area financial markets have weathered the spike in uncertainty and volatility with encouraging resilience," he said.

AFP

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