The European central bank issued a strong hint Mario draghi said will as soon as possible action to boost
On Friday, November 20)The European central bank (ECB)(ECB) President,Mario draghiSaid the central bank is ready to act quickly to boostThe euro zoneWeak inflation.This is the most strongly hinted that the European central bank has issued a forecast on December 3rd central bank meeting new stimulus measures.
Mario draghi stressed, adjust asset purchases and deposit rates are possible tools, to help prevent inflation to fall further.
Mario draghi said at a news conference in Frankfurt, "European central bank unable to reach a 2% increased risk of inflation target, if on December 3, determine the current path of monetary policy is not enough to achieve the goal, we will action as soon as possible in order to enhance the inflation as much as possible."
Mario draghi said,The euroArea moderate the strength of the recovery, the global demand outlook, in particularEmerging marketsThe demand outlook significantly worse in recent months.
Foreign media reported that his views by the European central bank management committee may be some other members of the opposition.The committee includes board member and the central bank chief 19 euro area member states.
GermanyGovernor of the bank of rigidity in the same situation insist that more optimistic view of economy, present the reason for making new policy initiatives before the patient.
Mr. Weidner ManSheng said, "I see no reason to talk down the economic outlook, or paint a bleak picture, we should not forget that monetary policy measures have been taken also need time to give full play in the economic effect."
The European central bank since march every month to buy 60 billion euros (64 billionThe dollar) is given priority to with bond assets to help push up inflation, but prices rose just 0.1% in October.
Mario draghi for the European central bank's quantitative easing (QE) asset purchase policy, said the policy down the euro zone's corporate borrowing costs.He pointed out that could expand the scale of asset purchases or prolong the time, also can adjust the composition of the purchased assets, in order to further stimulate the economy.Deposit interest rates could be cut again, in order to enlarge the influence of QE.
The European central bank deposit rate is negative 0.2%, means that the bank put the money in the European central bank will pay interest.Negative interest rates to stimulate bank lending, rather than to heap reserves on the European central bank.
Some people question the benefits of ultra-low interest rate policy, deutsche bank's co-chief executive Juergen Fitschen, said the eurozone bank lending increase
driven by negative interest rates may not enough to offset the policy also led to the impact of the bank profit margins decline.
Market also has the European central bank is expected to take further action on December 3rd, is likely to include continue to cut interest rates, and decided to carry it out in September 2016 after continue to asset purchases.At the end of September 2016 the bank planned to buy assets.
Mario draghi said that if the European central bank that eurozone inflation faces the risk of further away from the central bank's target, will take action, the comments echo a central tube committee meeting in October to express concerns.
draghiSaid, "if we think the medium-term price stability target the downward risk balance tendency, we will take action and use all available tools."