Draghi Pushes ECB Closer to QE

Mario Draghi just pushed the European Central Bank closer to quantitative easing.

With euro-area data this week poised to show the weakest inflation since 2009, the ECB president used the high-profile central banking conference in Jackson Hole, Wyoming, to warn that investor bets on prices have “exhibited significant declines.”

The comments will fan speculation that to ward off Japanese-style deflation the ECB is finally heading for a form of monetary stimulus it has long avoided. Draghi has previously said that a worsening of the medium-term inflation outlook would provide a reason for broad-based asset purchases.

Bloomberg

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