Business Irish

Monday 16 September 2019

Inflation at 1pc builds ECB stimulus case

European Central Bank HQ in Frankfurt. Stock photo
European Central Bank HQ in Frankfurt. Stock photo

Tarmo Virki

Eurozone inflation, running at just 1pc in July, is too low and the European Central Bank could decide in September on further stimulus, Estonian central bank governor Madis Müller said yesterday.

"Inflation is far from our target of almost 2pc," he said. "This could mean that the central bank has to further boost the economy."

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Meanwhile, in the UK, Bank of England governor Mark Carney said he did not think negative interest rates were an option for the British economy at the moment, in comments published yesterday.

"At this stage, we do not see negative rates as an option here. I am not criticising others that have used them, but we don't see it as an option," he told website Central Banking.

Mr Carney also called on France and Germany to act to ensure that uncleared derivative contracts can function smoothly after Brexit occurs.

Reuters

Irish Independent

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