27.04.201722:44:00UTC+00ECB Stands Pat on Policy but Notes Eurozone Recovery

The European Central Bank retained its ultra-loose monetary policy as inflation continues to surpass its target, but unequivocally noted the strength of the euro area economy, which is now in its best condition since the global financial crisis.

Despite rising calls from German hawks for a gradual exit from the stimulus, the ECB defied expectations and even opened the door to more rate cuts or a hike in asset purchases.

However, ECB President Mario Draghi addressed that the euro zone's economy showed further improvement and the threat of a new downturn has eased, an indication perceived as majority as a foreshadowing to a pivotal shift in stance at the next policy meeting in june.

Speaking at a new conference, the ECB head said the incoming economic data since the March meeting confirmed the sustained and steady recovery of the region's economy and that downturn risks to the economy has further allayed.

But Draghi said that inflation was not yet steady despite the improved economic growth. He said that underlying inflation pressures, which continued to be weak and have not yet shown a solid upward trajectory, was the reason why they have retained the existing stimulus measures.