This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-29933943
The article has changed 6 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
ECB promises more action to boost economy if needed | |
(35 minutes later) | |
The president of the European Central Bank (ECB), Mario Draghi, says the bank stands ready to give the eurozone further economic stimulus "should it become necessary". | |
The bank began an asset purchase programme last month, but has come under pressure to do more to boost weak economic growth in the eurozone. | The bank began an asset purchase programme last month, but has come under pressure to do more to boost weak economic growth in the eurozone. |
His pledge boosted shares in Europe. | |
The ECB's regular policy meeting left interest rates unchanged at their record low of 0.05%, as expected. | |
On Tuesday, the European Commission cuts its growth forecast for the eurozone. | On Tuesday, the European Commission cuts its growth forecast for the eurozone. |
It now expects the eurozone to grow by just 0.8% this year, down from a previous estimate of 1.2%. | It now expects the eurozone to grow by just 0.8% this year, down from a previous estimate of 1.2%. |
The commission also cut its growth forecast for 2015 to 1.1% from 1.7%. | The commission also cut its growth forecast for 2015 to 1.1% from 1.7%. |
Mr Draghi said: "Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate." | |
Recovery | Recovery |
In September, the bank's head Mario Draghi announced an asset buying programme, although not a quantitative easing (QE) programme, which involves buying mainly government debt - something that is hugely controversial within the eurozone and fiercely opposed by powerful Germany. | |
Its attempt to kick some life into the sluggish eurozone economy is to buy covered bonds and other assets for two years. | Its attempt to kick some life into the sluggish eurozone economy is to buy covered bonds and other assets for two years. |
Covered bonds are those backed by public sector loans or mortgages. | Covered bonds are those backed by public sector loans or mortgages. |
Many economists do not think this will be enough to promote economic recovery and there is pressure on Mr Draghi to come up with more. | Many economists do not think this will be enough to promote economic recovery and there is pressure on Mr Draghi to come up with more. |
Next month the ECB will give its latest forecasts for the eurozone area. Its most recent, given in September, forecast growth of 0.9% this year and 1.6% in 2015. |