Mario Draghi pledges March review of European Central Bank's monetary policy

Turmoil in financial markets and concerns over China and other emerging markets will prompt a March review of the European Central Bank’s monetary policy, president Mario Draghi said yesterday, holding out the prospect of further loosening.

The euro eased against the dollar as Draghi, speaking after the ECB kept its main rates on hold, said the bank expected rates to “stay at present or lower levels for an extended period of time”.

“As we start the new year, downside risks have increased again amid heightened uncertainty about emerging market economies’ growth prospects, volatility in financial and commodity markets and geopolitical risks,” he said.