ECB leaves rates unchanged, euro rises before dipping again

The European Central Bank announced on Thursday that it kept its monetary policy on hold, as was widely expected. The central bank twice boosted its stimulus since December but ECB President Mario Draghi said the ECB was ready to take fresh action if needed, and that all policy tools were on the table—including deeper interest-rate cuts, which he had all but ruled out last month.

Draghi reopened the door to fresh interest-rate cuts and launched a counterattack against the bank’s German critics, who he warned could delay a return to higher growth.

“We have a mandate for the whole Eurozone, not just Germany,” Mr. Draghi said after the ECB’s policy meeting. “We obey the law, not politicians. We are independent.”

The ECH chief also highlighted risks and uncertainties in the global economy, but still he called for patience from investors to allow its existing stimulus to filter through to the economy.

The ECB’s policies “work; they are effective,” Mr. Draghi said. “Give them time to display their effects.”

The euro rose against the dollar during Mario Draghi’s press conference and reached as high as $1.14 but soon faded gains and fell back below $1.13 late in the European afternoon. European stocks, meanwhile, remained lower on the day after a strong rally of late, ending down 0.3%.

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