European Central Bank holds door open for action

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Associated Press

Posted on May 8, 2014 at 8:32 AM

Updated Thursday, May 8 at 9:02 AM

BRUSSELS (AP) — European Central Bank President Mario Draghi says the eurozone's top monetary authority "is not resigned" to low inflation and held the door open to taking action as soon as its June meeting.

The ECB's rate-setting council took no action Thursday. But Draghi mentioned several times that the council would have new staff projections in June as fodder for its decisions.

He said the 24-member council was "dissatisfied about the projected path of inflation" and "is not resigned to have too low inflation for too long a time."

The annual rate of 0.7 percent is below the bank's goal of 2 percent and has raised fears of crippling deflation. To boost prices, the bank could cut its main interest rate, make its deposit rate for banks negative or start buying bonds.

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