26 C
Lagos

European Central Bank to decide stimulus move ‘in October’ as euro soars

Must Read

Akwa Ibom Plans Launch Of Anthem, State Emblem, Others

Akwa Ibom State Government has commenced plans to launch its own anthem and emblem to create a...

Messi Was Tempted To Join Arsenal – Soldini

Barcelona captain, Lionel Messi, was “tempted” by the prospect of joining Arsenal when his close friend, Cesc...

Obaseki, Shaibu Receive Certificates Of Return

The Independent National Electoral Commission (INEC) has issued certificates of return to Edo State Governor, Godwin Obaseki,...

The European Central Bank will decide next month on its next stimulus moves, chief Mario Draghi said, as he voiced concern over the recent strength of the euro and its slowing effect on inflation.

The ECB is currently buying 60 billion euros ($72 billion) per month of government and corporate bond purchases as part of its efforts to push up growth and inflation. The 2.3-trillion-euro program, known as “quantitative easing”, is set to run until December, but observers expect it to continue into next year, and markets are eager for clues on when and how the bank plans to begin winding down the scheme.

“This autumn we will decide on the calibration of our policy instruments beyond the end of the year,” Draghi said at a press conference after a meeting of the bank’s governing council in Frankfurt.

“Unless a risk that is not seen today materializes, we should be ready to take the bulk of these decisions in October,” he said. Policymakers would be “taking into account the expected path of inflation”, he added, as consumer prices rises remain stubbornly below the bank’s target of just under 2.0 percent.

The ECB’s slow-motion move away from QE has been complicated by the euro’s rise against the dollar in recent months, with cheaper imports keeping the lid on consumer prices.

“The recent volatility in the exchange rate represents a source of uncertainty which requires monitoring with regard to its possible implications for the medium-term outlook for price stability,” Draghi said at a press conference.

The euro, which has climbed by more than 10 percent against the greenback this year, surged to as high as $1.21 after Draghi’s comments. The ECB also unveiled its latest economic forecasts. It significantly lifted its 2017 growth forecast for the eurozone from 1.9 percent to 2.2 percent.

But it kept its projections for 2018 and 2019 unchanged from June, at 1.8 percent and 1.7 percent respectively. The bank left its 2017 inflation projection unchanged at 1.5 percent but slightly lowered forecasts for the next two years.

Consumer prices are expected to rise by 1.2 percent in 2018, and by 1.5 percent in 2019, said the ECB, shaving 0.1 percentage points off each of the two forecasts.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Akwa Ibom Plans Launch Of Anthem, State Emblem, Others

Akwa Ibom State Government has commenced plans to launch its own anthem and emblem to create a...

Messi Was Tempted To Join Arsenal – Soldini

Barcelona captain, Lionel Messi, was “tempted” by the prospect of joining Arsenal when his close friend, Cesc Fabregas, agreed to move to...

Obaseki, Shaibu Receive Certificates Of Return

The Independent National Electoral Commission (INEC) has issued certificates of return to Edo State Governor, Godwin Obaseki, and his deputy, Phillip Shaibu.

COVID-19: PTF Urges Religious Leaders To Ask Congregation To Wear Facemask

Mr Boss Mustapha, the Chairman, Presidential Task Force (PTF) on COVID-19, has advised religious leaders to without fear or favour continue to...

How to Register, Access Buhari’s N75bn Survival Fund

The President Muhammadu Buhari Federal Government on Monday opened the portal for its Survival Fund Micro, Small and Medium Enterprises, MSMEs, supportive...
- Advertisement -

More Articles Like This

- Advertisement -