The European Central Bank (ECB) announced its key policy decisions to cut the deposit rate by 10 basis points to minus 0.50 percent and to restart net purchases under its asset purchase program (APP) at a monthly pace of 20 billion euros (about $21.9 billion) as from Nov. 1.
The eurozone’s economic downturn is proving a boon for policymakers who are jostling to succeed Mario Draghi at the bloc’s central bank — offering them an opportunity to tout favored policy proposals and burnish their credentials for the job.
European Central Bank President Mario Draghi has declared that eurozone economic growth is on a steady course and that the risk of deflation is fading, allowing the central bank to phase out its bond-purchase program by the end of December.
Mario Draghi will only just manage to raise interest rates before his terms ends in October 2019 amid continued risks from US tariffs and Italian politics, according to a Bloomberg survey of economists.
Overall, it was a ‘cheerleading’ speech with Draghi emphasizing the accomplishments of the ECB and the importance of the European Union unifying against the threat of increased protectionism in order to promote economic prosperity.
The European Central Bank must involve the European Parliament in the decision-making process about new guidelines for bank bad loans, the head of the parliament told ECB President Mario Draghi in a letter published by the Italian press on Tuesday.
The recovery of the eurozone's economy will stay on track this year although heightened political uncertainty around the globe is likely to persist, the president of the European Central Bank (ECB) said in its annual report.