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As recession fears in Europe increase, the central bank signals an increase in stimulus



With the central bank's effective commitment to action as soon as it holds its next monetary policy meeting on July 25, Draghi may have reassured financial markets that economic stimulus will continue long after he leaves office.

His words could be considered as a kind of preemptive strike if it turns out that his successor is a Conservative, such as Jens Weidmann, a member of the ECB Governing Council from Germany, who is considered a top candidate. Mr Weidmann, who was in the audience on Tuesday, is considered less willing to aggressively combat a slowdown Monex Europe, a foreign exchange trading company, said in a statement. "Even a hawkish new ECB It will take some time for the president to unravel before any further tightening can even be put back on the agenda."

Mr. Draghi has not said publicly who he thinks is his successor Mr Draghi implied on Tuesday that Mr Weidmann's criticism of the European Central Bank's policy had contributed to the failure of Mr Weidmann to criticize Mr Weidmann In 2013, Mr Weidmann, who is also president of the Bundesbank, testified before the German Constitutional Court to back the euro opponents who had blocked the bond-buying program.

Without mentioning Mr Weidmann of Mr Draghi said, whenever national central banks supported the European Central Bank's policy, they helped to gain acceptance for the economy measures in the population. "Whenever this did not happen, you saw the opposite," Draghi said during the panel discussion. "They have indeed upset populism."

In December, the European Central Bank stopped raising its government and corporate bonds, which it had bought in large quantities to lower market interest rates. In March, however, when Trump's trade war disrupted the global economy, the European Central Bank showed some signs of reflection, reviving a program to encourage banks to lend more to businesses and consumers to prevent a recession. [19659008]
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