ECB Needs Help from Other Policy Areas as ‘Lower Bound’ Looms

The European Central Bank’s monetary stimulus needs to be complemented by action in other policy areas as the ECB is already operating near a “lower bound” where interest rates cannot be cut any farther, bank president Mario Draghi said on Wednesday.

Calling for more academic research into the interplay between policies, Mario Draghi said: “To my mind it is increasingly evident that, when we operate near the lower bound, such interactions are heightened.”

Reuters

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam