By The Global Journal | June 6, 2012 - 14:00 GMT 
In a declaration reporting on the expected outcomes of the meeting of the European Central Bank (ECB)’s Governing Council today (6 June), its head, Mario Draghi of Italy, announced that the current Eurozone debt crisis would lead the Bank to its low interest rates. He also qualified the current crisis to be less worrisome than the 2008 economic and financial crisis.
Draghi’s announcement happened while the ECB announced it would keep its interest rates at 1.0 percent, a historic low for the bank. “Increased downside risks” to the economy — with the debt crisis reaching Spain and Italy besides Greece — justifying his decision. Draghi, on behalf of the Governing Council, also congratulated European Union leaders for “agreeing to step up their reflections on the long-term vision for Economic and Monetary Union.”
Draghi explained that although the ECB was “alarmed”, the situation the Eurozone was facing was very different from the 2008 turmoil, caused after the collapse of the investment bank Lehman Brothers. He justified his position explaining that key economic and financial actors “know exactly what problems are now.” Then, policy-makers had needed some time to understand what was happening.
The decision to maintain the rates was adopted by consensus instead of unanimity while some members pushed for further cuts of interest rates to stimulate economy.
(Photo © World Economic Forum)
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