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WORLD NEWS 9
Friday 4 September 2015

European Central Bank ready to give eurozone more stimulus

DAVID McHUGH predicted it would do so
by raising the amount of
PAN PYLAS monthly bond purchases
rather than by extending
Associated Press the program’s duration.
A skeptic of such bond-
FRANKFURT, Germany (AP) buying programs, Kraemer
argued that more stimulus
— The European Central would not help, saying it
would only support finan-
Bank is ready to give the cial markets, while taking
pressure off of eurozone
eurozone economy a big- governments to reform
their economies.
ger dose of stimulus if tur- The stimulus is intended to
help get consumer price
moil in China and weaker inflation back toward the
ECB’s target of just below 2
global growth hurt its mod- percent. In the year to Au-
gust, inflation stood at just
est recovery, President Ma- 0.2 percent. Draghi said
the rate could even go
rio Draghi said Thursday. negative in coming months
due to a further drop in oil
Market volatility, concern prices this summer.
The hint at further stimu-
over a looming U.S. interest lus boosted stock markets
but weighed on the euro,
rate increase and a drop whose value would be di-
luted if more money is put
in oil prices have spawned in circulation.q

uncertainty over the glob-

al economy, leading the

ECB to cut its inflation and

growth forecasts for the

eurozone.

Draghi said the ECB can President of European Central Bank Mario Draghi, center, and vice President Vitor Constancio,
right, are on their way to a news conference in Frankfurt, Germany, Thursday, Sept. 3, 2015, fol-
add to its 1.1 trillion euro lowing a meeting of the ECB governing council.

($1.2 trillion) program, if the (AP Photo/Michael Probst)

19-country currency bloc

needs it. sition and duration of the the ECB’s cuts to its fore- economist at Commerz-
program.” casts “imply that QE will go bank, said the ECB would
“We expect the econom- Tom Rogers, senior eco- on longer than the current likely increase the size of
nomic adviser to the EY Eu- end-point.” the stimulus program at its
ic recovery to continue, rozone forecast, said that Joerg Kraemer, chief December meeting, and

albeit at a somewhat

weaker pace than ear-

lier expected, reflecting in

particular the slowdown in

emerging market econo-

mies, which is weighing on

global growth and foreign

demand for euro area ex-

ports,” Draghi said.

He cautioned it was pre-

mature to conclude that

the market turmoil of re-

cent weeks means longer-

term trouble for the world

economy. Draghi said that

before acting, the ECB

wanted to learn “whether

this is just the beginning of

long-term lower output,

or a strictly transitory phe-

nomenon.”

The ECB is pumping 60 bil-

lion euros a month in newly

printed money into the

eurozone economy by

buying government and

corporate bonds. The pro-

gram, dubbed quantita-

tive easing, or QE, is slated

to run at least through Sep-

tember 2016.

Draghi said the bank could

increase the “size, compo-