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.
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