4 Jun 2013

Gradual recovery for eurozone economy foreseen by ECB

5:43 am on 4 June 2013

European Central Bank president Mario Draghi says the eurozone economy is heading for a very gradual recovery later this year.

In a speech to a conference in Shanghai on Monday, Mr Draghi said the economic situation following successive financial crises remains challenging.

But he said a cut in interest rates last month to a new record low of p.5% is helping to stabilise the economy.

"Now the union is more resilient and stable than before," he said in reply to a question about a possible break-up of the monetary union. "The overall view is it's here to stay."

Mr Draghi said that the ECB would "continue to support macroeconomic performance by ensuring price stability in the euro area". He did not directly answer a question on quantitative easing.