The European Central Bank left its ultra-easy policy stance in place on Thursday as inflation continues to undershoot its target but explicitly acknowledged the vigour of the eurozone economy, now on its best run since the global financial crisis. The ECB maintained its bias for further policy easing, leaving the door open to further rates cuts or an increase in asset buys. This is in line with market expectations but at odds with calls from Germany, the eurozone’s economic powerhouse, for a gradual reduction of stimulus. “Incoming data since our meeting in March confirm that the cyclical recovery of the euro area economy is becoming increasingly solid and that downside risks have further diminished,” ECB President Mario Draghi told a news conference. “At the same time, underlying inflation pressures continue to remain subdued and have yet to show a convincing upwards trend,” he added, justifying the continued stimulus measures. However, in response to a reporter’s question, Draghi ...
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