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ECB's Draghi Says Policy Stance Accommodative, Not Short Of Tools

European Central Bank President Mario Draghi said on Wednesday that the bank's monetary policy stance remained accommodative in the face of weaker growth outlook for the euro area.

Speaking at the ECB Watchers conference in Frankfurt, Draghi said, "We are now seeing a more persistent deterioration of external demand."

"But a "soft patch" does not necessarily foreshadow a serious slump," he added.

The latest stimulus measure from the ECB is a new series of cheaper longterm loans to Eurozone bank under the TLTRO III scheme.

Considering the weaker outlook for inflation, the ECB Governing Council also decided to extend the date-based leg of it forward guidance on interest rates "at least through the end of 2019".

"These decisions ensure that our policy stance remains accommodative in the face of a weaker growth outlook," Draghi said.

"The commitment to our objective also implies alertness to future risks and a readiness to respond to them should the medium-term outlook continue to deteriorate significantly," Draghi noted.

"We are not short of instruments to deliver on our mandate," he said.

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