Connect with us

Hi, what are you looking for?

World

ECB’s Draghi: the strong euro could require policy action

-

European Central Bank chief Mario Draghi said Saturday that the bank may need to take action to stem the rising euro.

"The strengthening of the exchange rate would require monetary stimulus" as long as interest rates are already extremely low, he said.

Draghi also said that the ECB "should not be complacent" about extremely low inflation, which many fear could stall Europe's economic rebound.

Low inflation, he noted, puts a damper on demand, makes it difficult for troubled economies to make policy adjustments, and makes it tough for businesses and governments to cut their debt burdens.

"We could do further easing... and use unconventional measures," he said of ECB policy.

European Central Bank chief Mario Draghi said Saturday that the bank may need to take action to stem the rising euro.

“The strengthening of the exchange rate would require monetary stimulus” as long as interest rates are already extremely low, he said.

Draghi also said that the ECB “should not be complacent” about extremely low inflation, which many fear could stall Europe’s economic rebound.

Low inflation, he noted, puts a damper on demand, makes it difficult for troubled economies to make policy adjustments, and makes it tough for businesses and governments to cut their debt burdens.

“We could do further easing… and use unconventional measures,” he said of ECB policy.

AFP
Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:

Business

Cartier owner Richemont posted Friday a hefty drop in net profit for the first half of the year as watch sales sank in China.

Business

UK drivers using the Bolt ride-hailing platform should be considered employees and have access to rights such as the minimum wage.

Life

Queen Camilla, the wife of Britain's head of state King Charles III, will miss two of the most important dates in the royal calendar...