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This article was published on Oct. 22, 2015 at 14:32.
The last change is the October 22, 2015 at 15:17.
In December, the ECB may take further monetary stimulus to combat the double threat posed by low inflation and low growth. The said Mario Draghi at the end of the meeting of the Governing Council: the level of monetary easing by the ECB “shall be reviewed in December,” he said. This is because of downside risks to growth and inflation and problems in some emerging countries. The immediate reaction of the exchange, with the euro plummeting to 1.1178 against the dollar.
“We had an extensive discussion about the tools that we could use – said the president of the ECB – There is no specific decision has yet been taken. The conclusion is that we are ready to act if necessary, and we are open to all options for monetary policy. In short: we are no longer in view of the “wait and see”, but the “work and assess”. ” The ECB has therefore sent a very clear message to the markets: in December, most likely will come new expansionary measures that might go to a stepping up of quantitative easing (currently the ECB buys 60 billion of securities a month, mostly government bonds) a further cut in interest rates on bank deposits with the ECB, a hypothesis that is now been considered by the governors, up to an extension of the Q and it has expired in September 2016. In addition to disappointing growth, what central bankers are worried about the lack of rebound in inflation, so who are considering the possibility that the return to inflation close to 2% – under this mandate that both sides can slip past the time.
The purchases in the program of quantitative easing, said Draghi, “progressing smoothly and have a favorable impact on the availability of credit for households and businesses.” The BCED launched its massive purchase plan last March and has a portfolio of 371 billion of government bonds.
The Eurotower, which met today, “away” in Malta, he has meanwhile left the main refinancing rate at a record low of 0.05%. The marginal lending rate and the rate on bank deposits are respectively 0.30% and -0.20 percent. But may soon go down again.
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