View more on these topics

Draghi gets backing for eurozone QE extension

europe

The European Central Bank’s governing council has given its support to extending quantitative easing next month.

A statement on the minutes of the monetary policy meeting of the 20 and 21 January, published today, show the ECB’s governing council unanimously said the aggressive policy stance “needed to be reviewed and possibly reconsidered” at the next meeting in March.

The statement said: “The point was made that, in a situation in which risks were predominantly on the downside and new downside risks were emerging, it would be preferable to act pre-emptively, taking emerging risks into account, rather than to wait until after risks had fully materialised.”

However, the council said policy rates would remain at current or lower levels for “an extended period of time”, as previously announced by ECB president Mario Draghi.

The council said: “In the light of prevailing uncertainties and volatility, members considered it premature to conclude on policy action at the current meeting and to discuss precise policy options that could be taken, if needed.”

In December, the overnight deposit rate was cut to -0.2 per cent in an attempt to push banks to lend.

That same month the ECB extended its monthly €60bn stimulus programme by six months to March 2017.

Recommended

15

Nic Cicutti: Why I’ve changed my stance on robo-advice

Last week I found myself on the phone to one of my favourite industry commentators. This person and I have known each other for more than 20 years, from back when I was a rookie reporter at Money Marketing. Now that I am no longer living in London we talk less often and probably only […]

The FCA’s five fixes for retirement information

The Financial Conduct Authority (FCA) has started to change the way that people will be told about their pension options. In a recent market study paper, they lay out their final proposals on the information that should be delivered to people approaching retirement and how it should look and feel. During 2015, there will be […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment