ECB President Mario Draghi is expected to reveal new measures to stimulate the flagging eurozone economy before stepping down.
Share to linkedinThursday's policy meeting will mark ECB President Mario Draghi's last after eight years directing the eurozone's central bank.picture alliance via Getty ImagesTopline: Outgoing European Central Bank (ECB) president Mario Draghi is tipped to unveil new measures to stimulate the flagging eurozone economy on Thursday.
The eurozone’s central bank left rates for banks depositing their money at the ECB unchanged in July, at minus 0.4%, a record low.Economists expect that the central bank will announce a further 10 or 20 basis point cut in this rate. Negative interest rates have cut into the profitability of European banks and a scheme to exempt them from further costs might be included in the new measures .
The ECB is also widely expected to restart its quantitative easing programme through buying up government bonds of euro zone countries, according to analystsbyReuters. The measure, which was paused last year, could encourage those governments to borrow more money to invest in national projects.
An announcement will be made at 11:45 GMT, with a press conference to follow later.Key background: Draghi billed as the saviour of the euro currency by some has also faced criticism for the unconventional monetary policies he used to shepherd the eurozone through a recession and debt crisis in his eight years leading the Frankfurt-based central bank.
Eurozone inflation is running at just 1% and with just 1.1% year-over-year growth in the second quarter while the 19 country monetary bloc faces significant headwinds from the U.S-China trade war, Brexit uncertainty and signs the German’s economy, Europe’s largest, is heading for recession.
Former IMF Chairwoman Christine Lagarde will take over from Draghi from November 1.Tangent Read more: Forbes »
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It never occurs to the Europeans that cutting taxes and regulations is the best stimulus that an economy can have.
US Treasury yields rise ahead of ECB decisionU.S. government debt yields rose Thursday morning, as traders looked ahead to fresh data and a rate decision by the European Central Bank (ECB).
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The ECB decision is coming — here’s what to expectIf there’s one thing that observers agree on with respect to Thursday’s European Central Bank meeting, it’s that the central bank will announcing a series of...
European stocks set to open higher on ECB stimulus hopes and US tariff delayEuropean stocks were set to open higher Thursday as investors look ahead to an anticipated announcement of easing measures from the European Central Bank (ECB). Our mission at is to build the social media platform that ends fake news