Draghi Reassures Markets ECB can do Unlimited Interventions

The European Central Bank’s new bond-buying program allows for unlimited interventions in sovereign debt markets and should dispel concerns about a euro zone break-up, ECB President Mario Draghi said on Wednesday.

Speaking a day before the ECB meets for its November policy meeting, Draghi also said that money was starting to flow back into the 17-country bloc, including its suffering southern members.

He added that the bank expects the euro zone economy to remain weak “in the near term” but that “inflation is well contained. We expect it to fall below 2 percent next year.”

The European Commission said on Wednesday that the euro zone economy will barely grow next year but pick up in 2014, forecasting slower growth than governments in all the bloc’s biggest economies expect.

via Reuters

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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
Alfonso Esparza

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