ECB to reassess growth outlook

FRANKFURT • Risks to euro zone growth have declined further and the European Central Bank will be in position at its meeting on June 8 to reassess the outlook for growth and inflation, said ECB president Mario Draghi yesterday.

Underlying inflation pressures remained subdued due to low wage growth, he said, so substantial monetary accommodation is still needed. The ECB has long argued that even with growth picking up, inflation is weak, so it needs to maintain its unprecedented level of stimulus and keep rates in negative territory.

REUTERS

Fall in Saudi foreign reserves

RIYADH • Saudi Arabia's net foreign assets dropped below US$500 billion (S$690 billion) last month for the first time since 2011 even after the kingdom raised US$9 billion from its first international sale of Islamic bonds.

Its foreign reserves have dropped from a peak of more than US$730 billion in 2014 after the fall in oil prices, prompting the International Monetary Fund to warn that it may run out of financial assets needed to support spending within five years.

BLOOMBERG