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

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 SKY News. 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