2012.05.03 15:08:02 ECB Draghi Again Puts Onus On Governments To Act

LONDON -(Dow Jones)- European Central Bank President Mario Draghi again insisted Thursday that it is up to governments to take the next steps to restore the euro-zone economy to health. "We note progress is being made in many countries, but several governments need to be more ambitious," Draghi said, repeating the list of measures that the ECB has already taken to support the economy. "They must take determined policy actions to address major imbalances." In opening remarks at his monthly press conference, Draghi stuck largely to his previous assessment of the euro-zone economy, saying it would "recover gradually" over the course of the year. At the same time, Draghi said, inflation will stay above the bank's medium-term target of "close to, but below, 2%" for the rest of the year, but will fall below 2% early next year. He said underlying price pressures were "limited" given the weakness of the economy, and the "prevailing uncertainties" that surround it. "The economic outlook continues to be subject to downside risks," Draghi said. Draghi also said the ECB had noted an increase in deposits at banks in March, but said the ECB's massive injections of liquidity at the turn of the year "will need time" to have their full supportive effect. The bank had earlier left its key refinancing rate at its record low of 1%, as universally expected. -By Geoffrey T. Smith, Dow Jones Newswires (+44 207) 842 9941; geoffrey.smith@dowjones.com (END) Dow Jones Newswires May 03, 2012 09:08 ET (13:08 GMT)