Daily Archives: April 4, 2012

Claire Jones

Mario Draghi. Image by Getty.

Mario Draghi. Image by Getty.

Hello and welcome to the live blog on the European Central Bank’s press conference.

ECB president Mario Draghi will be taking journalists’ questions following the conclusion of the governing council’s monthly monetary policy vote.

This post should update automatically every few minutes, although it may take longer on mobile devices.

14.35 This live blog is now closed.

14.34 Press conference ends.

14.34 Mr Draghi notes the recent falls in M3 (the ECB’s measure of broad money, which is signal of how much banks are lending as well as inflationary pressures) are the first in history.

14.32 The ECB president on the four reasons why banks don’t lend.

“The first is that they don’t have money, they don’t have funding. We took care of that. The second: they don’t have capital, and we cannot take care of that. The third is risk aversion, and to the extent that this depends on counterparties not having enough capital, we can’t take care of that. The fourth is demand. We cannot take care of demand, other than through short-term interest rates.”

14.28 A rare moment of praise from the ECB president for the eurozone’s beleaguered governments. Progress in deficit countries since last autumn has been “extraordinary”, both on the fiscal and structural side, he says.

14.25 Has Mr Draghi adopted a more hawkish tone at today’s meeting? Marc Ostwald of Monument Securities thinks so. 

Claire Jones

The European Central Bank’s governing council has, as expected, left rates on hold for the fourth month in a row.

The benchmark main refinancing rate remains at 1%. The lending and deposit rates stay at 1.75% and 0.25% respectively.