Draghi: ECB ready to act on rates

CNC report from Frankfurt
Added On April 5, 2013

European Central Bank President Mario Draghi says the ECB will monitor the economic situation closely and stand ready to act on interest rates if necessary.

In a statement, Draghi says weak economic activity has extended into the early part of the year and a gradual recovery is projected for the second half of this year, subject to downside risks.

He says "Against this overall background, the monetary policy stance will remain accommodative for as long as needed."

And the ECB will monitor the economic and monetary developments, and assess the impact on the outlook for price stability.
Draghi adds the ECB would look at the experiences of other countries to help fight the crisis and promote growth.

He stresses the ECB is looking at non-standard measures in a comprehensive manner.
With regard to the initial bailout plan of Cyprus, which intends to impose a levy on small depositors, Draghi says it's "not smart."
But Draghi stresses that the Cyprus deal is "no template".

Draghi points out European leaders put a large amount of political capital in eurozone and the importance of euro should not be underestimated.