FRANKFURT, July 10 - The following is a selection of comments from the European Central Bank's news conference on Thursday after the bank's council decision to hold its benchmark refi rate at 2.0 percent. Double-click on [nL10618031] for the interest rate story. All comments from ECB President Wim Duisenberg unless stated otherwise.
THIS ITEM WILL BE UPDATED THROUGHOUT THE NEWS CONFERENCE LATEST QUOTES "Downside risks to this main scenario are still relevant. While concerns over the SARS virus have faded there are risks relating particularly to the accumulation of macroeconomic imbalances outside the euro area and to the extent of the adjustments still needed in the euro area corporate sector to enhance productivity and profitability."
ON PRICE DEVELOPMENETS The outlook over the medium-term remains favourable. For the remainder of this year annual...inflation rates are expected to fluctuate around the current level of about two percent.
GROWTH
"The governing council will of course continue to monitor carefully all factors which may affect this assessment. "The latest data and information continue to suggest that economic growth in the euro area will remain subdued in the second quarter of the year after virtually stagnating in the first quarter. "The indicators available broadly point to a stabilisation of activity but there are no signs yet of an underlying strength in production and in confidence."
MONETARY POLICY STANCE
"We have concluded that the current monetary policy stance is appropriate."//