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Euro weakens as ECB leaves door open for more QE
Mario Draghi signalled that the European Central Bank is prepared to launch a fresh round of monetary stimulus as soon as March, bolstering a recovery on US and European equities in the wake of heavy losses this year.
The ECB president said it would “review and possibly reconsider” its monetary policy stance at its next meeting in six weeks — little more than a month after the ECB last unleashed a round of stimulus.
“We are not surrendering in front of these global factors,” he said, referring to the China slowdown and the falling oil price that have destabilised global markets in recent weeks.
The ECB has “the power, the willingness, the determination to act, and the fact that there are no limits to our action” to bring inflation up to its target of just below 2 per cent, he added. Policymakers, he said, would “absolutely reject” attempts to derail their efforts to raise inflation “without undue delay”.
His comments spurred a rebound in US and eurozone equities, sending the S&P 500 up 1.4 per cent as it rallied after the worst start to the year in two decades.
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