Russia driving up euro, says Draghi / Monetary policy decisions, May 2014

Low inflation, weak demand and high unemployment were not the only reasons for a strong euro, which is a "matter of serious concern" for the governing board of the European Central Bank (ECB).

Russia's actions in Ukraine were "certainly one of the reasons", with credit flows from Russia and Ukraine "having the effect of keeping the euro strong," ECB chief Mario Draghi said on the 8 May 2014 in a press conference.

The Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility would remain unchanged at 0.25%, 0.75% and 0.00% respectively.

• Primary Source

ECB: Press Conference, 08.05.14: Introductory statement to the press conference (with Q&A) http://www.ecb.europa.eu/press/pressconf/2014/html/is140508.en.html

ESO: Background information: Institutional overhaul of the euro area – progress and remaining challenges http://www.europeansources.info/record/institutional-overhaul-of-the-euro-area-progress-and-remaining-challenges/

ESO: Background information: Monetary policy decisions, April 2014 / ECB considers printing more money http://www.europeansources.info/record/monetary-policy-decisions-april-2014-ecb-considers-printing-more-money/

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