The European Central Bank (ECB) decided on Thursday to keep their monetary policy intact by making no changes to their interest rates despite concerns of deflation after a 4 year drop in inflation in March.
The ECB decided to keep its main interest rate at a record low of 0.25 percent while the rate for bank deposits remains set at zero.
Inflation in the 18 member Euro-area fell to 0.5 percent in March, the lowest level since November 2009 and well below the ECB’s target of 2 percent.
The ECB downplayed March’s low inflation reading which renewed concerns of deflation as the unemployment level in the Euro-area remains at a near record 12 percent.
The ECB reported that the Euro-area is experiencing a “protracted period of low inflation.”
Draghi maintained that inflation is likely to pick up in April, saying that the 0.5 percent reading in March reflects the timing of easter and other energy factors.