The bond buying of
quantitative easing "is planned until September 2016 or even
longer if necessary," ECB chief Mario Draghi said Thursday,
stressing the need to fully implement the asset-buying
programme.
The ECB has decided to increase the share limit on its
public-sector purchase programme from 25% to 33%, Draghi said.
That means the ECB could buy more of a single asset,
addressing fears that it might run out of bonds to buy.
The economic recovery will continue but at a slower rate
than previously forecast, he said.
The ECB lowered its growth and inflation forecasts.
It lowered its growth forecasts for the eurozone from
+1.5% to +1.4% for this year and from 1.9% to 1.7% for next.
And lowered its eurozone inflation forecasts from 0.3% to
0.1% for this year, from 1.5% to 1.1% for 2016 and from 1.8% to
1.7% for 2017.
Draghi said that "we could see negative numbers for
inflation in the next few months but the ECB considers them
transient because of low oil prices".
Draghi said that "available information indicates a slower
increase in inflation compared to previous forecasts."
He said it was still "premature", however, to say whether
developments in oil prices "will have a lasting impact on
prices".
The ECB is "ready to use all available instruments within
its mandate" to address changes in inflation prospects, Draghi
said.
Thursday was Draghi's 68th birthday.
ALL RIGHTS RESERVED © Copyright ANSA
