Draghi: economic outlook weak, not improving

FRANKFURT Thu Nov 8, 2012 11:01pm IST

1 of 6. European Central Bank (ECB) President Mario Draghi gestures during a news conference in Frankfurt, November 8, 2012.

Credit: Reuters/Lisi Niesner

Related Video

FRANKFURT (Reuters) - The European Central Bank expects the euro zone economy to remain poor, ECB President Mario Draghi said after the bank left interest rates unchanged on Thursday.

"Economic activity in the euro area is expected to remain weak," Draghi told his regular monthly news conference after the ECB held its main interest rate at 0.75 percent.

He noted that recent economic surveys did not signal any improvement heading to the end of the year.

Highlighting weakness in the economy, German business confidence fell last month to its lowest since February 2010 and euro zone manufacturing shrank for the 15th month running

Draghi reiterated the ECB's view that inflation, which eased to an estimated 2.5 percent in October, would fall below 2 percent next year. The central bank targets inflation of close to but below 2 percent.

(Writing by Paul Carrel. Editing by Jeremy Gaunt.)

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage