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ECB's Draghi drops reference to 'downside risks' to economy
June 8, 2017 / 12:42 PM / 5 months ago

ECB's Draghi drops reference to 'downside risks' to economy

TALLINN (Reuters) - European Central Bank President Mario Draghi dropped a long-standing reference to “downside risks” to the euro zone’s economic outlook from his policy message on Thursday, saying instead that risks are now “broadly balanced”.

FILE PHOTO: European Central Bank President Mario Draghi (R) and his wife (L) arrive at the Petruzzelli Theatre during a G7 for Financial ministers in the southern Italian city of Bari, Italy May 11, 2017. REUTERS/Alessandro Bianchi/File Photo

He added that inflation remains subdued.

The widely expected change in the wording reflects an acceleration of the bloc’s economic recovery in recent months and is likely to be taken as a sign that the ECB is preparing for an eventual withdrawal of its aggressive stimulus measures.

Earlier, the ECB dropped reference to possibly lower interest rates when it pledged to keep at their present level for an extended period of time and well past the horizon of its asset purchases.

Editing by Catherine Evans/Jeremy Gaunt

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