european central bank : press conference – introductory statement introductory statement by mr jean - claude trichet, president of the european central bank, and mr lucas papademos, vice - president of the european central bank, frankfurt am main, 8 april 2010. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to our press conference. we will now report on the outcome of today ’ s meeting of the governing council, which was also attended by commissioner rehn. based on its regular economic and monetary analyses, the governing council decided to leave the key ecb interest rates unchanged. the current rates remain appropriate. taking into account all the information and analyses that have become available since our meeting on 4 march 2010, price developments are expected to remain moderate over the policyrelevant horizon. the latest information has also confirmed that the economic recovery in the euro area continued in the early months of 2010. overall, the governing council expects the euro area economy to expand at a moderate pace in 2010, in an environment of uncertainty, with the growth pattern possibly being uneven owing to a number of special factors. the outcome of the monetary analysis confirms the assessment of low inflationary pressures over the medium term. all in all, we expect price stability to be maintained over the medium term, thereby supporting the purchasing power of euro area households. inflation expectations remain firmly anchored in line with the governing council ’ s aim of keeping inflation rates below, but close to, 2 % over the medium term. we will continue to monitor very closely all developments over the period ahead. let me now explain our assessment in greater detail, starting with the economic analysis. benefiting from the ongoing recovery in the world economy, the significant macroeconomic stimulus provided and the measures adopted to restore the functioning of the banking system, the euro area economy grew by 0. 4 % in the third quarter of 2009, after a period of sharp decline, while in the fourth quarter real gdp was flat, according to eurostat ’ s second release. available indicators, in particular further positive information from business surveys, suggest that the economic recovery in the euro area continued in the early months of 2010, although it may have been affected by a number of special factors, including adverse weather conditions. as a consequence, euro area real gdp growth is likely to have remained uneven around the turn of the year, making it advisable to look through the quarterly volatility and to compare growth developments on a half - yearly basis. looking

ahead, the governing council expects real gdp growth to continue to expand at a moderate pace in 2010, owing to the ongoing process of balance sheet adjustment in various sectors and the expectation that low capacity utilisation is likely to dampen investment and that consumption is being hampered by weak labour market prospects. the governing council continues to view the risks to this outlook as broadly balanced, in an environment of uncertainty. on the upside, the global economy and foreign trade may recover more strongly than projected and confidence may improve more than expected. furthermore, there may be greater than anticipated effects stemming from the extensive macroeconomic stimulus being provided and from other policy measures taken. on the downside, concerns remain relating to renewed tensions in some financial market segments, a stronger or more protracted than expected negative feedback loop between the real economy and the financial sector, renewed increases in oil and other commodity prices, and the intensification of protectionist pressures, as well as the possibility of a disorderly correction of global imbalances. with regard to price developments, euro area annual hicp inflation was 1. 5 % in march 2010, according to eurostat ’ s flash estimate, after 0. 9 % in february. while no breakdown of overall hicp developments is available yet, this higher than expected outcome may be related in particular to the energy component as well as food prices, possibly partly as a result of weather conditions. inflation is expected to remain moderate over the policy - relevant horizon. in line with a slow recovery in domestic and foreign demand, overall price, cost and wage developments are expected to stay subdued. inflation expectations over the medium to longer term remain firmly anchored in line with the governing council ’ s aim of keeping inflation rates below, but close to, 2 % over the medium term. risks to this outlook remain broadly balanced. they relate, in particular, to further developments in economic activity and the evolution of commodity prices. furthermore, increases in indirect taxation and administered prices may be greater than currently expected, owing to the need for fiscal consolidation in the coming years. turning to the monetary analysis, the annual growth rate of m3 was – 0. 4 % in february. annual growth in loans to the private sector also remained weak, at – 0. 4 %, despite a positive flow in the month. overall, the latest data continue to support the assessment that the underlying pace of monetary expansion is moderate and that, in the medium term, the inflationary pressures associated with monetary developments are low. the growth of m3