upside risks relate to higher commodity prices and stronger than expected increases in administered prices and indirect taxes, while downside risks stem from weaker than expected economic activity. concerning the staff macroeconomic projections, let me inform you that the governing council has decided to publish more details as of december 2013. you will receive this material today after the press conference. turning to the monetary analysis, data for october confirm the assessment of subdued underlying growth in broad money ( m3 ) and credit. annual growth in m3 moderated to 1. 4 % in october, from 2. 0 % in september. this moderation was partly related to a base effect. annual growth in m1 remained strong at 6. 6 %, reflecting a preference for liquidity, although it was below the peak of 8. 7 % observed in april. net capital inflows into the euro area continued to be the main factor supporting annual m3 growth, while the annual rate of change of loans to the private sector remained weak. the annual growth rate of loans to households ( adjusted for loan sales and securitisation ) stood at 0. 3 % in october, broadly unchanged since the beginning of the year. the annual rate of change of loans to non - financial corporations ( adjusted for loan sales and securitisation ) was – 2. 9 % in october, following – 2. 8 % in september and – 2. 9 % in august. overall, weak loan dynamics for non - financial corporations continue to reflect their lagged relationship with the business cycle, credit risk and the ongoing adjustment of financial and non - financial sector balance sheets. since the summer of 2012 substantial progress has been made in improving the funding situation of banks. in order to ensure an adequate transmission of monetary policy to the financing conditions in euro area countries, it is essential that the fragmentation of euro area credit markets declines further and that the resilience of banks is strengthened where needed. the ecb ’ s comprehensive assessment before it adopts its supervisory role under the single supervisory mechanism will further support this confidence - building process. it will enhance the quality of information available on the condition of banks and result in the identification and implementation of necessary corrective actions. further decisive steps to establish a banking union will help to restore confidence in the financial system. to sum up, the economic analysis indicates that we may experience a prolonged period of low inflation, to be followed by a gradual upward movement towards inflation rates below, but close to, 2 % later on. a cross - check with

mario draghi : ecb press conference – introductory statement introductory statement by mr mario draghi, president of the european central bank, frankfurt am main, 5 december 2013. * * * ladies and gentlemen, i am very pleased to welcome you to our press conference. i will now report on the outcome of today ’ s meeting of the governing council, which was also attended by the commission vice - president, mr rehn. based on our regular economic and monetary analyses, we decided to keep the key ecb interest rates unchanged. incoming information and analysis have confirmed our assessment and monetary policy decisions of last month. underlying price pressures in the euro area are expected to remain subdued over the medium term. in keeping with this picture, monetary and credit dynamics remain subdued. at the same time, inflation expectations for the euro area over the medium to long term continue to be firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2 %. such a constellation suggests that we may experience a prolonged period of low inflation, to be followed by a gradual upward movement towards inflation rates below, but close to, 2 % later on. our monetary policy stance will remain accommodative for as long as necessary, and will thereby continue to assist the gradual economic recovery in the euro area. in this context, the governing council confirmed its forward guidance that it continues to expect the key ecb interest rates to remain at present or lower levels for an extended period of time. this expectation continues to be based on an overall subdued outlook for inflation extending into the medium term, given the broad - based weakness of the economy and subdued monetary dynamics. with regard to money market conditions and their potential impact on our monetary policy stance, we are monitoring developments closely and are ready to consider all available instruments. let me now explain our assessment in greater detail, starting with the economic analysis. following a rise of 0. 3 % in the second quarter of 2013, real gdp in the euro area increased by 0. 1 %, quarter on quarter, in the third quarter. developments in survey - based confidence indicators up to november are consistent with a positive growth rate also in the fourth quarter of the year. looking ahead to 2014 and 2015, output is expected to recover at a slow pace, in particular owing to some improvement in domestic demand supported by the accommodative monetary policy stance. euro area economic activity should, in addition, benefit from a gradual strengthening of demand for exports. furthermore, the overall