Draghi Under Pressure to Deliver Fresh Stimulus Package

Mario Draghi wants to go out with a bang, by launching a fresh wave of monetary easing before he steps down as European Central Bank president in October — but the vital question is whether the bank’s governing council will agree, the Financial Times reported. Mr Draghi is expected to put the option of fresh stimulus measures up for discussion at the ECB’s board meeting on Thursday, in response to worries about an economic slowdown and subdued inflation in the eurozone. He has four main options: interest rates could be cut further into record negative territory; the quantitative easing programme could be restarted to buy more bonds on top of the €2.6tn the ECB already holds; cheap loans can be offered to lenders; and the central bank could strengthen its forward guidance. Read more

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