ECB's Draghi, reiterating pledge on low rates, says euro zone slowly recovering

Reuters

PARIS, Oct 2 (Reuters) - The euro zone economy remains ontrack for a slow recovery, European Central Bank President MarioDraghi said on Wednesday, reiterating the ECB's pledge to keepinterest rates low for now.

"Real GDP growth in the second quarter was positive aftersix quarters of negative output growth and confidence indicatorsup to September confirm the expected gradual improvement ineconomic activity from low levels," he told a news conference inParis after the bank had left interest rates unchanged.

The ECB launched its forward guidance to keep interest rateslow or lower for an extended period in July to fend off pressureon money market rates following the U.S. Federal Reserve'sannouncement to slow down its bond purchases.

He repeated that interest rates would stay where they are orlower for "an extended period of time".

Consumer price inflation in the euro zone slowed to 1.1percent in September, EU statistics office Eurostat said onMonday. The ECB's goal is just below 2 percent, though it looksat prices over the medium term.

Rates