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Duration of Eurozone stimulus in focus as central bank meets

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Investors will look for clues about whether the European Central Bank will extend its 1.74 trillion euro (£1.56 trillion) bond-buying stimulus program beyond its earliest end date of March, 2017.

According to analysts, the bank is not likely to announce a decision at Thursday’s meeting of its 25-member governing council, or to change its main interest rate benchmark, currently at a record low of zero. Any action is considered more likely in December.

ECB President Mario Draghi’s remarks at his post-meeting news conference will be scrutinized for hints about the possibility of extending the 80 billion euros in monthly purchases. The purchases pump new money into the financial system. The aim is to increasing inflation from its current annual 0.4 per cent, far below the bank’s goal of just under 2 per cent.

Paul

The author Paul