Bloomberg News

Draghi Extends Unlimited Cash Offerings as Outlook Dims

June 06, 2012

ECB President Mario Draghi

Mario Draghi, president of the European Central Bank (ECB). Photographer: Alessia Pierdomenico/Bloomberg

European Central Bank President Mario Draghi said officials will extend their offerings of unlimited cash until the start of 2013 for periods up to three months as they try to head off risks stemming from the euro region debt crisis.

“We have decided to continue our main refinancing at fixed rate, full allotment for as long as necessary” and at least until January, Draghi told reporters in Frankfurt today. He didn’t indicate whether the ECB plans to offer banks a new round of three-year cash.

The ECB today left its benchmark interest rate at 1 percent as the debt crisis tightens its grip on the euro-area economy, increasing pressure on policy makers to deliver further stimulus. Draghi also said today that the euro region economy faces “increased downside risks.”

To contact the reporter on this story: John Fraher in London at jfraher@bloomberg.net

To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net


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