Draghi Says ECB Rate to Stay Low for ‘Extended Period’
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President Mario Draghi said the European Central Bank expects to keep interest rates low for an “extended period” as he tries to restrain market borrowing costs, in a new departure for an institution averse to setting policy in advance.
With ECB officials today leaving their main refinancing rate at 0.5 percent, Draghi fleshed out their outlook for monetary policy after investors pushed up long-term bond yields, threatening the region’s economic recovery. The statement came on the same day that the Bank of England also tried to manage investor expectations in Mark Carney’s first week as governor.