FRANKFURT (Reuters) - The recovery of the euro zone’s economy will stay on track this year although heightened political uncertainty around the globe is likely to persist, the president of the European Central Bank said in its annual report.
“Political uncertainty is likely to persist into 2017. But we remain confident that the economic recovery, buoyed by our monetary policy, will continue,” Mario Draghi wrote in the report, published on Monday.
The ECB has cut its main policy rate to zero and has purchased bonds worth trillions of euros in the aftermath of the 2007-09 financial crisis.
The central bank has to decide later this year if it wants to wind down its money-printing from January, a policy action its critics - mainly in the bloc’s powerhouse Germany - have long been asking for.
Draghi gave no hints about the ECB’s future monetary policy steps in the annual report, but repeated that the central bank would stick to its mandate to maintain price stability in the 19-member currency union.
Reporting by Andreas Framke; editing by Andrew Roche