FRANKFURT, March 27 (Reuters) - The euro zone is facing a more persistent deterioration of external demand and the European Central Bank stands ready to further delay a planned interest rate hike if necessary, ECB President Mario Draghi said on Wednesday.
“Just as we did at our March meeting, we would ensure that monetary policy continues to accompany the economy by adjusting our rate forward guidance to reflect the new inflation outlook,” Draghi told a conference in Frankfurt.
Earlier this month the ECB reversed course, providing banks with a new liquidity facility and delaying a planned rate hike as growth and inflation are slowing more than expected on pervasive uncertainty.
Still, the bank argued that the risk of a recession remained low and growth would continue, so a rate hike from record lows remains on the table for 2020. (Reporting by Balazs Koranyi and Francesco Canepa)