Wednesday 22 November 2017

ECB's Draghi says he will not stop short in QE

Mario Draghi, ECB president
Mario Draghi, ECB president

The European Central Bank will fully complete its programme of money printing to buy chiefly government bonds, its president said on Thursday, adding that he saw little indication of financial imbalances emerging.

"While we have already seen a substantial effect of our measures on asset prices and economic confidence, what ultimately matters is that we see an equivalent effect on investment, consumption and inflation," said Mario Draghi in the text of a speech delivered to an audience in Washington.

"To that effect, we will implement in full our purchase programme as announced and, in any case, until we see a sustained adjustment in the path of inflation."

Responding to critics who argue that such money printing or quantitative easing (QE) could fuel price bubbles in property, for instance, Draghi said: "At the moment there is little indication that generalised financial imbalances are emerging."


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