The European Central Bank leaves interest rates unchanged as expected, holding them at record lows as it seeks to revive growth and inflation with cheap credit to the economy. David Pollard reports.
In front of the world's financial press, he walked the walk. And talked the talk. But with, on this occasion, no action. And - even downplaying the major key risk. SOUNDBITE (English) ECB PRESIDENT, MARIO DRAGHI, SAYING: "Following the UK referendum on EU membership, our assessment is that euro area financial markets have weathered the spike in uncertainty and volatility with encouraging resilience." Rates and a 1.7 trillion euros QE programme - both were left at current levels. (SOUNDBITE) (English) NICK PARSONS, GLOBAL HEAD FX STRATEGY, NAB, SAYING: "The European Central Bank has made its bed. I think it's going to lie in it as comfortably as it can over the course of the next couple of months, and I don't see any impetus for change in policy. Price pressures are moving their way - we are seeing a movement towards positive inflation across the euro zone." (SOUNDBITE) (English) CMC MARKETS ANALYST, JASPER LAWLER, SAYING: "The ECB just instituted new measures in March. They actually put those into effect in June. So there really hasn't been time yet to see how corporate bond purchases and some of these new measures have actually affected the European economy." But at their next meeting, Draghi and his policymakers will have their latest forecasts. Needed to bolster any decision to pump more stimulus into the euro zone economy. Where near-zero inflation still mocks the ECB's target rate of near two per cent. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "I do think we'll see an increase in the asset purchase. I think we'll see the date move back and I think we'll probably see a cut in the deposit rate as well to open up the number of assets available to purchase. I think this will be the most straight-forward action." The ECB's next monetary policy decision is due on September 8th.