Draghi Defends QE and Negative Rates

Mario Draghi hit back on behalf of monetary policymakers around the world, dismissing growing criticism that their aggressive actions to support the economy had widened the gap between rich and poor.

In a speech at a think-tank event in Berlin, the president of the European Central Bank defended its policy of cutting rates to record low levels and buying bonds in mass quantities in an attempt to lift the euro zone economic recovery. The drastic actions had not widened the gap between rich and poor, he said.

“We have every reason to believe that, with the impetus provided by our recent measures, monetary policy is working as expected: by boosting consumption and investment and creating jobs, which is always socially progressive,” the ECB president said.

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.