ECB announces more stimulus and less growth
The ECB is reverting to stimulus just three months after policy makers decided to end their bond-buying programme
Frankfurt — European Central Bank (ECB) president Mario Draghi has disclosed the biggest cut in the ECB’s economic outlook since the advent of its quantitative-easing programme, as policy makers delivered a new round of stimulus to shore up growth. On Thursday, Draghi said the eurozone economy would expand only 1.1% in 2019, a 0.6 percentage point drop from the forecast provided just three months ago. A package of assistance from new loans for banks to a longer pledge on record-low rates is intended to expand the institution’s existing stimulus, he said. “The persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets appears to be leaving marks on economic sentiment,” Draghi told journalists in Frankfurt on Thursday. “The risks surrounding the euro area growth outlook are still tilted to the downside.” The ECB is reverting to stimulus just three months after policy makers decided to end their bond-buying programm...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.