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, 9 february 2012. * * * 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 rehn. based on our regular economic and monetary analyses, we decided to keep the key ecb interest rates unchanged. the information that has become available since mid - january broadly confirms our previous assessment. inflation is likely to stay above 2 % for several months to come, before declining to below 2 %. available survey indicators confirm some tentative signs of a stabilisation in economic activity at a low level around the turn of the year, but the economic outlook remains subject to high uncertainty and downside risks. the underlying pace of monetary expansion remains subdued. looking ahead, it is essential for monetary policy to maintain price stability for the euro area as a whole. this ensures a firm anchoring of inflation expectations in line with our aim of maintaining inflation rates below, but close to, 2 % over the medium term. such anchoring is a prerequisite for monetary policy to make its contribution to supporting economic growth and job creation in the euro area. a very thorough analysis of all incoming data and developments over the period ahead is warranted. through our non - standard monetary policy measures we will continue to support the functioning of the euro area financial sector, and thus the financing of the real economy. since the first three - year longer - term refinancing operation ( ltro ) was conducted in december 2011 we have approved specific national eligibility criteria and risk control measures for the temporary acceptance in a number of countries of additional credit claims as collateral in eurosystem credit operations, which should lead to an increase in available collateral. further details will be provided in a press release to be published today at 3. 30 p. m. at the start of the current reserve maintenance period on 18 january 2012 the reserve ratio was reduced, freeing up additional collateral. as stated on previous occasions, all our non - standard measures are temporary in nature. let me now explain our assessment in greater detail, starting with the economic analysis. real gdp growth in the fourth quarter of 2011 is likely to have been

- taking mfis which include licensing requirements ; corporate governance ; performance and accounting standards ; accountability and transparency ; deposit protection ; dissolution mechanisms and supervision by the central bank. the legislation further specifies limits on lending to ensure that mfis retain their core business of extending services to the poor, low - income households and smes as their core market segments and minimize dealings with insiders. ladies and gentlemen, i expect institutions to use innovative delivery channels and methodologies and reduce entry barriers resulting in increased efficiency and competition, hence reduction in costs and increased access in the near future. the ability to create new innovations and harness their potential will directly impact our market share and prosperity. through new ideas, best practices, innovative delivery channels and approaches, we can stimulate new thinking and, critically, new action. unleashing home - grown capital can create a pool of resources for local entrepreneurs to set up small business and diversify their economic base. microfinance, a new pillar of development, is yet another instrument to unleash the ideas and energies of local entrepreneurs with a potential to grow, to forge linkages with other businesses that will drive national savings and investments. ladies and gentlemen, the central bank, on its part, will continue to ensure macroeconomic stability and to provide an enabling regulatory environment for the financial sector growth and development. the supervisory and regulatory capacity of the central bank of kenya is strong and is continually being enhanced to cope with market dynamics and new skills and knowledge. we continue to be grateful to the development partners who have collaborated with us in building adequate skills and capacity in the field of microfinance. we shall also continue to work closely with the government ministries and microfinance practitioners in the development of the industry. ladies and gentlemen, we all would like to thank the attorney general ’ s chambers and the treasury who have tirelessly worked hard hand in hand with the central bank team in the preparation of the regulations and look forward to a speedy gazettement of the same to effect the act into operation. before i conclude, ladies and gentlemen, let me once again take this opportunity to assure the amfi, microfinance industry players and key stakeholders of the central bank ’ s continued commitment, collaboration and partnership in the development of the industry. finally, it is my pleasure to now declare the forum on the deposit - taking microfinance regulations 2008 officially opened and wish you fruitful deliberations. thank you.