mario draghi : ecb press conference - introductory statement introductory statement by mr mario draghi, president of the european central bank, and mr vitor constancio, vice - president of the european central bank, frankfurt am main, 8 december 2016. * * * 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 the commission vice - president, mr dombrovskis. based on our regular economic and monetary analyses, we today conducted a comprehensive assessment of the economic and inflation outlook and our monetary policy stance. as a result, the governing council took the following decisions in the pursuit of its price stability objective : as regards non - standard monetary policy measures, we will continue to make purchases under the asset purchase programme ( app ) at the current monthly pace of €80 billion until the end of march 2017. from april 2017, our net asset purchases are intended to continue at a monthly pace of €60 billion until the end of december 2017, or beyond, if necessary, and in any case until the governing council sees a sustained adjustment in the path of inflation consistent with its inflation aim. if, in the meantime, the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment of the path of inflation, the governing council intends to increase the programme in terms of size and / or duration. the net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the app. to ensure the continued smooth implementation of the eurosystem ’ s asset purchases, the governing council decided to adjust the parameters of the app as of january 2017 as follows. first, the maturity range of the public sector purchase programme will be broadened by decreasing the minimum remaining maturity for eligible securities from two years to one year. second, purchases of securities under the app with a yield to maturity below the interest rate on the ecb ’ s deposit facility will be permitted to the extent necessary. the key ecb interest rates were kept unchanged and we continue to expect them to remain at present or lower levels for an extended period of time, and well past the horizon of our net asset purchases. today ’ s extension of the asset purchase programme has been calibrated to preserve the very substantial degree of monetary accommodation necessary to secure a sustained convergence of inflation rates towards levels below, but close to

, 2 % over the medium term. together with the sizeable volume of past purchases and forthcoming reinvestments, it ensures that financial conditions in the euro area will remain very favourable, which continues to be crucial to achieve our objective. in particular, the extension of our purchases over a longer horizon allows for a more sustained market presence and, therefore, a more lasting transmission of our stimulus measures. this calibration reflects the moderate but firming recovery of the euro area economy and still subdued underlying inflationary pressures. the governing council will closely monitor the evolution of the outlook for price stability and, if warranted to achieve its objective, will act by using all the instruments available within its mandate. let me now explain our assessment in greater detail, starting with the economic analysis. real gdp in the euro area increased by 0. 3 %, quarter on quarter, in the third quarter of 2016, following similar growth in the second quarter. incoming data, notably survey results, point to a continuation of the growth trend in the fourth quarter of 2016. looking further ahead, we expect the economic expansion to proceed at a moderate but firming pace. the pass - through of our monetary policy measures to the real economy is supporting domestic demand and has 1 / 3 bis central bankers'speeches facilitated deleveraging. improvements in corporate profitability and very favourable financing conditions continue to promote a recovery in investment. moreover, sustained employment gains, which are also benefiting from past structural reforms, provide support for households ’ real disposable income and private consumption. at the same time, there are indications of a somewhat stronger global recovery. however, economic growth in the euro area is expected to be dampened by a sluggish pace of implementation of structural reforms and remaining balance sheet adjustments in a number of sectors. this assessment is broadly reflected in the december 2016 eurosystem staff macroeconomic projections for the euro area, which foresee annual real gdp increasing by 1. 7 % in 2016 and 2017, and by 1. 6 % in 2018 and 2019. compared with the september 2016 ecb staff macroeconomic projections, the outlook for real gdp growth is broadly unchanged. the risks surrounding the euro area growth outlook remain tilted to the downside. according to eurostat ’ s flash estimate, euro area annual hicp inflation in november 2016 was 0. 6 %, up further from 0. 5 % in october and 0. 4 % in september. this reflected to a large extent an increase in annual energy inflation