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Draghi: ECB might need to make asset purchases to boost inflation

  • European Central Bank President Mario Draghi has said that the ECB would need to take a "more expansionary stance," including "a broad-based asset-purchase program," should inflation remain too low for too long.
  • Draghi warned that the ECB needs to be watchful for "the potential for a negative spiral to take hold between low inflation, falling inflation expectations and credit, in particular in stressed countries. He was speaking at a symposium of central bankers and top economists in Portugal.
  • Draghi didn't say what action the ECB might take when policy makers next meet on June 15. Analysts believe that the bank might cut interest rates to 0.15% from 0.25% and implement a negative deposit rate, but asset purchases aren't expected just yet.
  • The euro is +0.1% at $1.3642.
  • ETFs: VGK, FEZ, IEV, EU, EPV, EUFN, EZU, HEDJ, FEU, FEP, UPV, ADRU, FEEU, EURL, EURZ, DBEU, FIEU
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Comments (2)
  • DeepValueLover
    , contributor
    Comments (8978) | Send Message
     
    For those of us who remember the Jimmy Carter years inflation is NOT what you want and deflation is a gift for people who depend on food, clothing and shelter to survive.
    26 May 2014, 09:41 AM Reply Like
  • capitolp
    , contributor
    Comments (678) | Send Message
     
    Damn it man, what about those poor Banks, we must raise inflation for the sake of the children, you know, the ones in private schools.
    26 May 2014, 12:08 PM Reply Like
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