As the ECB announced its interest rates leaving them steady at 1%, following was President Jean-Claude Trichet speaking at a press conference stating that economic recovery remains uneven while the current interest rates are appropriate. Trichet's outlook for the economy is that growth will be witnessed but at a moderate rate during this year while still there are low inflationary pressures over the medium term.
The 16-nation region agreed on the Greek government taking public deficit down to 3% by 2012, while they are confident that the goal could be reached at that time while the central bank is worried about the public deficit as this will undermine growth prospects. Although on the short run the liquidity is helpful for the euro zone, yet on the long run, it has a negative impact because this means that more money is to be paid back, like how Greece is dealing with the widened deficit, and the highest in all the euro zone, is hurting confidence levels.
Regarding the stimulus program, the next action will be taken in March as they will discuss when to end the stimulus measures while the 6-month loan will end.