ECB Draghi Says Eurozone Recovery Losing Momentum

European Central Bank head Mario Draghi defended the bank’s new stimulus programs as he warned that a tepid economic recovery in the eurozone “is losing momentum.”

Draghi told members of the European parliament that recent economic indicators have given “no indication” of an upturn since August. The 18 countries that use the euro saw no economic growth at all in the second quarter.

Draghi said growth was threatened by geopolitical disturbances and by failure of euro member governments to reform their economies and make them more efficient.

He defended the bank’s most recent stimulus program, an offer of cheap, long-term loans to banks. Banks took only 82.6 billion euros at the first offering Sept. 18 , less than many market analysts expected. Draghi said the takeup was within the bank’s expectations.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza