ECB to pummel even MORE money to save crumbling eurozone amid Italy turmoil and Brexit
FRESH measures aimed at injecting life into the ailing eurozone economy are expected to be unveiled by the European Central Bank (ECB) tomorrow.
By LANA CLEMENTS
Express.co.uk
Wed, Dec 7, 2016
Growth and inflation in the bloc both remain worryingly low, while unemployment is still embarrassingly high.
And there are fears the economy could stall further in coming months amid Britain’s exit from the European Union (EU).
Furthermore, political turmoil in Italy, along with French and German elections next year are another drag on growth prospects.
As a result, chief of the ECB Mario Draghi is tomorrow expected to announce that the bank’s money-printing will be extended – and he could even announce additional measures such as even lower interest rates.
The central bank is currently injecting billions of euros each month into the economy though a so-called Quantitative Easing programme that is scheduled to end in 2017.
But the eurozone economy grew by just 0.3 per cent in the third quarter, while inflation was only at 0.5 per cent in November.
The most recent readings put the jobless rate for the bloc at 10 per cent.
In September the ECB downgraded economic forecasts for Europe in 2017 and 2018 following the Brexit vote.
At the time, Mr Draghi said changes to current policies were being studied, raising hopes policymakers would take action in December.
In anticipation, Germany’s top stock index the DAX and France’s CAC surged by more than one per cent today.
If the ECB does announce additional measures, the euro is set to weaken against both the pound and the US dollar.
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