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Draghi rules out rate change, warns of credit crunch threat
Feb 9, 2012, 14:13 GMT
Frankfurt - European Central Bank President Mario Draghi has expressed concern about the threat of a credit crunch in the 17-member eurozone, but has stressed that the bank does not have any immediate plans for a change in interest rates.
'We frankly did not discuss any prospective or current change in interest rates,' he said, referring to Thursday's meeting of the ECB's rate setting council.
Draghi said bank conditions had tightened in several countries towards the end of the year, noting that a series of moves by the ECB to pump liquidity into the eurozone financial system were 'still unfolding.'
'Uncertainty is high (with) the global economy, sovereign (debt market) tensions and the credit markets,' the ECB chief said.
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