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.)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-WTO Row

REUTERS SHOWCASE

Market Eye

Market Eye

Nifty falls most in nearly 3-1/2 weeks; Sensex down over 400 points  Full Article 

Factory Activity

Factory Activity

Factories post fastest growth for 17 months in July  Full Article 

Paying for Bail

Paying for Bail

Jailed Subrata Roy gets office to negotiate hotel sales.  Full Article 

Rupee Dips

Rupee Dips

Rupee posts biggest weekly loss since record lows in August.  Full Article 

Reviving Infosys

Reviving Infosys

CEO Sikka says to improve business with new growth avenues  Full Article 

Outlook Slashed

Outlook Slashed

ArcelorMittal cuts outlook as ore prices hit mining  Full Article 

Re-gaining Momentum

Re-gaining Momentum

China, Asian factory growth gathers pace; Europe falters  Full Article 

Factory Lockout

Factory Lockout

Pfizer says threats to managers force staff lockout at Mumbai factory .  Full Article 

Gold Smuggling

Gold Smuggling

In cat-and-mouse game, India uncovers new gold smuggling route.  Full Article 

Reuters India Mobile

Reuters India Mobile

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