Draghi Sees Risks on Downside as ECB Analyzes Negative Rates

(Bloomberg) -- European Central Bank President Mario Draghi said risks to the euro area’s economic outlook remain tilted to the downside and a pickup in inflation is delayed, warranting a continued accommodative monetary policy that includes negative interest rates.

“If necessary, we need to reflect on possible measures that can preserve the favorable implications of negative rates for the economy, while mitigating the side effects, if any,’ Draghi said. “That said, low bank profitability is not an inevitable consequence of negative rates.”

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