The European Central Bank looks set to inject fresh stimulus into the eurozone’s economy on Thursday after its president, Mario Draghi, said he and his policymakers would “do what we must” to return inflation from its current level of 0.1 per cent to their target of less than 2 per cent “as quickly as possible”.
Mr Draghi’s hints at action have been so strong that doing nothing would risk huge disappointment in financial markets. A slowing recovery and lacklustre inflation present a compelling case for doing more for most of the rate-setting governing council, despite staunch opposition from German policymakers and a handful of others on the 25-strong committee.
Since late October, officials from across the single currency area have congregated in Frankfurt to brainstorm on what the central bank could do. The fruits of those discussions are set to reach members of the governing council over the next few days.
Here are five changes the ECB could make. The most likely course is a mix of some, or even all, of the five.