Mario Draghi backs down

Share

• Copy link
• Facebook
• X
• Linkedin
• Whatsapp
• Pinterest

Share this article

Join the conversation

Follow us

Add us as a preferred source on Google

Newsletter

Get the MoneyWeek Newsletter

Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors

---

By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

You are now subscribed

Your newsletter sign-up was successful

---

Want to add more newsletters?

Twice daily

MoneyWeek

Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Signup +

Four times a week

Look After My Bills

Sign up to our free money-saving newsletter, filled with the latest news and expert advice to help you find the best tips and deals for managing your bills. Start saving today!

Signup +

---

An account already exists for this email address, please log in.

Subscribe to our newsletter

What happened?

He also extended the ECB's QE programme by six months, so that it will end in March 2017, rather than September 2016 (though it could continue beyond then). And he announced that the ECB would consider broadening the type of assets that it buys, to include local and regional government debt, rather than simply national bonds.

How have the markets reacted?

The euro quickly increased in value, while expected bond yields on eurozone government debt have increased.

So, why did Draghi back down?

Draghi pointed to "subdued growth prospects in emerging markets and moderate global trade, the necessary balance sheet adjustments in a number of sectors and the sluggish pace of implementation of structural reforms".

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Is the ECB split on QE?

Last month, Sabine Lautenschlaeger, a member of the ECB's executive board stated that she saw "no need for further monetary-policy measures, especially not for an expansion of the asset-purchase program". Instead, she argued that, "We should give the numerous and, all-in-all formidable, monetary-policy efforts time to show their full effects".

Estonia's Central Bank governor Ardo Hansson also stated in October that "we should be patient and give these policies a bit more time to have an effect".