2014, after 0. 4 % in july. this decline reflects primarily lower energy price inflation, while the other main components remained broadly unchanged in aggregate. inflation rates have now remained low for a considerable period of time. as said, today ’ s decisions, together with the other measures in place, have been taken to underpin the firm anchoring of medium to longterm inflation expectations, in line with our aim of maintaining inflation rates below, but close to, 2 %. on the basis of current information, annual hicp inflation is expected to remain at low levels over the coming months, before increasing gradually during 2015 and 2016. the september 2014 ecb staff macroeconomic projections for the euro area foresee annual hicp inflation at 0. 6 % in 2014, 1. 1 % in 2015 and 1. 4 % in 2016. in comparison with the june 2014 eurosystem staff macroeconomic projections, the projection for inflation for 2014 has been revised downwards. the projections for 2015 and 2016 have remained unchanged. the governing council, taking into account the measures decided today, will continue to closely monitor the risks to the outlook for price developments over the medium term. in this context, we will focus in particular on the possible repercussions of dampened growth dynamics, geopolitical developments, exchange rate developments and the pass - through of our monetary policy measures. turning to the monetary analysis, data for july 2014 continue to point to subdued underlying growth in broad money ( m3 ), with annual growth standing at 1. 8 % in july, compared with 1. 6 % in june. the growth of the narrow monetary aggregate m1 stood at 5. 6 % in july, up from 5. 4 % in june. the increase in the mfi net external asset position, reflecting in part the continued interest of international investors in euro area assets, remained an important factor supporting annual m3 growth. the annual rate of change of loans to non - financial corporations ( adjusted for loan sales and securitisation ) remained negative at – 2. 2 % in july, unchanged compared with the previous month. however, net redemptions were again sizeable in july. lending to non - financial corporations continues to reflect the lagged relationship with the business cycle, credit risk, credit supply factors and the ongoing adjustment of financial and non - financial sector balance sheets. the annual growth rate of loans to households ( adjusted for loan sales and securitisation ) was 0. 5 % in july, broadly unchanged since

mario draghi : ecb press conference – introductory statement introductory statement by mr mario draghi, president of the european central bank, frankfurt am main, 4 september 2014. * * * 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 katainen. based on our regular economic and monetary analyses, the governing council decided today to lower the interest rate on the main refinancing operations of the eurosystem by 10 basis points to 0. 05 % and the rate on the marginal lending facility by 10 basis points to 0. 30 %. the rate on the deposit facility was lowered by 10 basis points to – 0. 20 %. in addition, the governing council decided to start purchasing non - financial private sector assets. the eurosystem will purchase a broad portfolio of simple and transparent asset - backed securities ( abss ) with underlying assets consisting of claims against the euro area non - financial private sector under an abs purchase programme ( abspp ). this reflects the role of the abs market in facilitating new credit flows to the economy and follows the intensification of preparatory work on this matter, as decided by the governing council in june. in parallel, the eurosystem will also purchase a broad portfolio of euro - denominated covered bonds issued by mfis domiciled in the euro area under a new covered bond purchase programme ( cbpp3 ). interventions under these programmes will start in october 2014. the detailed modalities of these programmes will be announced after the governing council meeting of 2 october 2014. the newly decided measures, together with the targeted longer - term refinancing operations which will be conducted in two weeks, will have a sizeable impact on our balance sheet. these decisions will add to the range of monetary policy measures taken over recent months. in particular, they will support our forward guidance on the key ecb interest rates and reflect the fact that there are significant and increasing differences in the monetary policy cycle between major advanced economies. they will further enhance the functioning of the monetary policy transmission mechanism and support the provision of credit to the broad economy. in our analysis, we took into account the overall subdued outlook for inflation, the weakening in the euro area ’ s growth momentum over the recent past and the continued subdued monetary and credit dynamics. today ’ s decisions