Connect with us

Hi, what are you looking for?

World

ECB’s Draghi: the strong euro could require policy action

-

European Central Bank chief Mario Draghi said Saturday that the bank may need to take action to stem the rising euro.

"The strengthening of the exchange rate would require monetary stimulus" as long as interest rates are already extremely low, he said.

Draghi also said that the ECB "should not be complacent" about extremely low inflation, which many fear could stall Europe's economic rebound.

Low inflation, he noted, puts a damper on demand, makes it difficult for troubled economies to make policy adjustments, and makes it tough for businesses and governments to cut their debt burdens.

"We could do further easing... and use unconventional measures," he said of ECB policy.

European Central Bank chief Mario Draghi said Saturday that the bank may need to take action to stem the rising euro.

“The strengthening of the exchange rate would require monetary stimulus” as long as interest rates are already extremely low, he said.

Draghi also said that the ECB “should not be complacent” about extremely low inflation, which many fear could stall Europe’s economic rebound.

Low inflation, he noted, puts a damper on demand, makes it difficult for troubled economies to make policy adjustments, and makes it tough for businesses and governments to cut their debt burdens.

“We could do further easing… and use unconventional measures,” he said of ECB policy.

AFP
Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:

World

Calling for urgent action is the international medical humanitarian organization Doctors Without Borders/Médecins Sans Frontières (MSF)

World

Immigration is a symptom of a much deeper worldwide problem.

Business

Saudi Aramco President & CEO Amin Nasser speaks during the CERAWeek oil summit in Houston, Texas - Copyright AFP Mark FelixPointing to the still...

Business

A recent article in the Wall Street Journal infers that some workers might be falling out of the job market altogether.