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European Central Bank president Mario Draghi is holding a press conference after the ECB announced its keeping its key interest rate unchanged.
Fox -- Ashley Webster is live in Frankfurt Germany -- ECB headquarters and he joins us now with more on this good morning -- Good morning Diane mole BCB president Mario Draghi now on throwing out questions from the media we've been listening in from -- post there outside.
And it's interesting he has made no major announcement that any particular plan has been put in place other than the announcement that the key interest rate the benchmark rate will remain at three quarters of a percent but he has hinted.
-- perhaps further measures the ECB would take.
Among those -- half -- activating the EFSF which is the a temporary bailout fund perhaps taking some open market operations perhaps.
Suggesting bond buying operations but none of this is for sure all.
He's also say they're looking at although.
Non standard measures that may be used to -- -- at least bring down the borrowing costs of those countries that are struggling with massive amounts of debt.
-- certainly Spain and Italy included in that.
He's -- though.
Just a short while ago that the ECB cannot replace governments on the fiscal side he says the ECB.
Has to maintain independence in its monetary policy and this could having taken right out of the playbook.
Of the German Bundesbank the German Central Bank which of course is very very conservative.
And is maintained all along that the EC -- simply.
Does not have the mandate to interfere.
In the sovereign -- and sovereign governments -- fiscal affairs.
He did say though that the ECB will be working with a governing council to find other solutions which -- -- could be a hints of bigger things to come.
But on the issue of the ESM that's the permanent bailout fund being given -- banking licensee -- and -- -- -- but he said look.
These GM -- just designed just does not allow for a banking -- he says.
It cannot be recognized as a legitimate counter parties so that's interest -- it would have to -- some major.
Legal action in order for the ESM he says to become a bank of sorts.
He was also lost about approved a two pronged -- approach.
To bringing down the Spanish and -- hi bond yields with perhaps.
The ESM buying bonds on the primary bomb -- for the ECB buying on the secondary market.
That also was shot down that he said possibly.
Maybe that comes under the non standard measures but certainly something that is not being announced today as being anywhere close.
He says also the government's need to show great determination he said this in the last press conference as well.
He also stated -- -- close to the top of his statements the Euro he says is irreversible.
-- -- he doesn't meant that the high bond yields that we are seeing an unacceptable.
And that was a huge part of the discussion of the ECB governing council.
Today but he says growth remains weak in Europe and action needs to be taken but -- at this point the ECB hinting at lots of things but not.
I repeat not pulling the trigger back two years.
Sounds familiar that's -- web -- live from Frankfurt Germany thanks Ashley.
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