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ECB's Draghi says interest rates to stay low for an extended period

ECB's Draghi says interest rates to stay low for an extended period
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There were no changes to the cost of borrowing announced on Thursday after the monthly policy meeting at the European Central Bank. The main rate stayed at a record low of 0.5 percent.

And at his post gathering news conference ECB President Mario Draghi said interest rates were expected to remain at present or lower levels for an extended period because of risks to growth.

He added that recent developments in financial and money markets may negatively affect economic conditions.

The ECB’s has been talking of a gradual recovery taking hold in the second half of this year and gathering pace next year.

Draghi’s comments pushed European share prices up while the euro fell to a four-month low.

The ECB’s gradual recovery scenario is supported by strong orders for manufactured goods which meant factory activity in the eurozone rose at the fastest pace in over two years in August.

Recent market rate pressure is linked to the global impact of the US Federal Reserve heading towards cutting back its stimulus programme – a dominant factor in global finance.

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