Inflation in the euro- zone area slipped to 0.7 percent last month, below the ECB's target of slightly lower than 2 percent. Draghi attributed the fall in inflation to lower energy costs and expects inflation to remain low for an extended period as the recovery in the 18- nation euro area continues to be fragile. The ECB President emphasized that the Central bank would wait until next month to gauge the performance of the euro- zone economy and is willing to take significant steps with regards to monetary policy, if required.
The President was of the view that current monetary policy should be able to support domestic demand although risks remain to the downside and any uncertainty in the emerging economies could negatively impact the economic conditions in the euro- area. The euro slipped after the rate announcement, but rebounded as ECB President