ECB head says willing to ‘step up pressure’ to stimulate economyNovember 21, 2014 - 14:33 AMT PanARMENIAN.Net - European Central Bank head Mario Draghi says the eurozone's chief monetary authority is willing to "step up the pressure" and broaden its efforts to stimulate the struggling economy, the Associated Press reports. Draghi said Friday, Nov 21, at a banking congress in Frankfurt, Germany that if current efforts do not achieve the desired effect the ECB could "broaden even more the channels through which we intervene." The ECB has already lowered its benchmark interest rate to near zero and started purchasing bonds made up of bank loans to companies — an effort to boost lending and economic activity. Draghi said the bank could alter "the size, pace and composition of our purchases." Some economists think the bank could widen the bond purchases to include corporate or government bonds in an effort to pump newly created money into the financial system — so-called quantitative easing, or QE. The U.S. Federal Reserve, Bank of Japan and Bank of England have made such purchases to stimulate growth. The ECB has held off because bond purchases are legally and politically more complicated in a multi-country currency union. The measure also faces resistance in Germany, the eurozone's largest member. Some officials and economists say more central bank stimulus would only take pressure off governments to make pro-growth reforms, and that bond purchases could unfairly stick German taxpayers with any losses in case of default. The bank's governing council meets on Dec 4, though economists have tended to expect any additional stimulus to be decided early next year, the AP says. The central bank is trying to raise the rate of annual inflation, currently only 0.4 percent. That is a sign of economic weakness and has raised fears the 18 countries that use the euro will remain stuck in a prolonged period of low growth and high unemployment. "We will do what we must to raise inflation and inflation expectations as fast as possible," Draghi said in his speech at the European Banking Congress. The eurozone grew only 0.2 percent in the third quarter, and recent economic indicators for future growth have been downbeat. Unemployment is 11.5 percent. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Armenia-Qatar ties discussed in Doha The Secretary of Armenia’s Security Council met with the Deputy Secretary General of the National Security Council of Qatar. ARARAT special evening dedicated to Aznavour's 100th Anniv. On May 20 ARARAT legendary Armenian brandy, celebrated the centennial of Maestro Charles Aznavour with a special event. Surveying works underway in Armenia’s Kirants Surveying works are underway in the Armenian village of Kirants in the northern Tavush province. Armenia calls for prohibiting threats of attacks on nuclear facilities Armenia has raised the need for a treaty prohibiting attacks on nuclear facilities devoted to peaceful purposes. |