ECB Draghi: Euro area economy in period of ‘protracted weakness’

FRANKFURT (Reuters) – European Central Bank President Mario Draghi said on Thursday that the euro zone economy was in a period of “protracted” economic weakness, with inflation staying low and the balance of risks tilted toward the downside.

“Incoming information since the last Governing Council meeting indicates a more protracted weakness of the euro area economy, the persistence of prominent downside risks and muted inflationary pressures,” Draghi told reporters after a policy meeting.

Nevertheless, he said the bank expected the bloc’s economy to eke out “moderate but positive” growth in the July-September quarter.

The ECB earlier approved fresh stimulus measures to prop up the euro area economy, cutting rates deeper into negative territory and relaunching an extended bond purchase scheme.