JAKARTA (TheInsiderStories) – European Central Bank chief Mario Draghi took a swipe at Washington on Thursday for talking down the dollar, a move he said threatened a decades-old pact not to target the currency and might force his bank to change its own policy.
Draghi made it clear that he does not expect the bank to change interest rates in 2018, saying: “Based on today’s data I can see very few chances that interest rates could be raised at all this year.”
ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively.
The euro jumped above to a three year high against the dollar on Thursday afternoon despite Draghi’s efforts to pause the single currency’s recent rally.
The euro hit US$1.25 – a high not seen since 2015 – early in a press conference held by Draghi after the ECB left monetary policy unchanged. The euro dropped back below that level after comments from Draghi aimed at pacifying the surging currency.
“Recent volatility in the exchange rate represents a source of uncertainty which requires monitoring with regard to its possible implications for the medium-term outlook for price stability,” Draghi said.