European Central Bank President Mario Draghi on Thursday said the economic outlook remains subject to downside risks, tied in part to ongoing tensions in some sovereign debt markets.
European Central Bank President Mario Draghi on Thursday said the economic outlook remains subject to downside risks, tied in part to ongoing tensions in some sovereign debt markets. Draghi said the ECB will be on the lookout for signs that higher energy costs are being passed through to broader prices but said the central bank sees risks to the medium-term inflation outlook as "broadly balanced." Draghi said demand for credit remains weak and that it would take time for the ECB's liquidity measures to feed through. Draghi said the long-term refinancing operations would ultimately have a positive impact on lending when demand returns. The ECB left its key lending rate unchanged at 1% earlier Thursday.
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