Draghi Hints At Future ECB Stimulus Moves, Oil Recovers Slightly

As expected, the European Central Bank left interest rates unchanged on Thursday as concerns over of faltering global economic growth continued.

The decision was made at the ECB’s regular meeting, where European Central Bank chief Mario Draghi announced he would keep the bank’s benchmark rate unchanged at 0.05%.

At the previous ECB meeting in December, the rate had been cut from -0.2% in an attempt to push banks to lend instead of parking money at the ECB.

ECB to Review Again in March

At a press conference following the meeting, Draghi said that the bank will “review and possibly reconsider” monetary policy at its next meeting in March. He said eurozone rates would “stay at present or lower levels for an extended period” and there would be “no limits” to action to reflate the eurozone.

The euro slid 0.8 percent to $1.0808 at 4:44 p.m. Frankfurt time. European bonds rose and stocks extended gains.

The dollar strengthened against the euro on the announcement, and last stood up 0.5 percent at $1.083. Stocks also jumped on the announcement, with France’s CAC and Germany’s DAX both closing up around 2 percent. London’s FTSE finished higher too, at 1.8 percent. U.S. stocks were also up on Thursday.

Oil prices showed gains in late trade after government data showed U.S. crude stockpiles had risen some 4 million barrels in the previous week, above analyst expectations.

Brent crude was trading over 3 percent up at Europe’s close around $28.95, while U.S. WTI also saw strong gains, last stood at $29.36.

A year after announcing an unprecedented quantitative-easing plan and a month after extending that program while making the deposit rate more negative, the ECB is still struggling to lift inflation above zero. With a questionable Chinese economy putting pressure on global markets and exacerbating an oil crash, Draghi is insisting that the EU is still able to act if necessary.