UK economy 'stronger than expected' in February; ECB holds interest rates – business live

Britain’s economy expanded by 0.2% in February, better than expected, thanks to a burst in manufacturing outputLatest: Mario Draghi explains why ECB left borrowing costs unchangedBreaking: UK economy grew by 0.2% in FebruaryEconomy expanded by 0.3% in last quarterManufacturing output surgedWhat the experts say 2.28pm BST Draghi is then asked about Italy’s weak economy, after Rome slashed its 2019 growth forecast from 1% to just 0.2%.He says the move isn’t a surprise, and shows the need to boost growth in Italy…… without pushing up borrowing costs (that’s a criticism of its populist government, which spooked investors last year with its budget plans).Draghi on Italy: “The data on the Italian economy didn’t come as a surprise. There have been already downgrades in the forecasts. So from this viewpoint it is not a surprise” (1/3) #Draghi #ECBDraghi: “It is quite clear the priority is to restore growth and employment. Italy knows how to do it.” (2/3) #Draghi #ECBDraghi: “It is very important that these priorities are pursued without causing an increase in interest rates, because increases in interest rates are contractionary. That should be the aim of economic policy there.” (3/3) #Draghi #ECB 2.20pm BST Q: Might you intervene and promote the merits of European Union in the run-up to European parliamentary elections?Draghi say that central banks don’t usually get involved in elections (with good reason!), and it wouldn’t be right to intervene.Draghi: Central banks don’t usually intervene in the political debate. On occasion the ECB can defend the European framework and point out ways to complete it and remedy weaknesses. Continue reading…
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