- Mario Draghi, ECB President
Within the annual economic symposium, held in Jackson Hole by the Federal Reserve Bank of Kansas City, the ECB President Mario Draghi has made a strong commitment to start the long-awaited asset purchases program. Alongside, Mario Draghi pointed on a more significant role of local governments of single currency area's member states, as they could loose their fiscal policies to push spending and inflation up. Consumer price index in the single currency area has dropped to 0.3% in August, far below the ECB target of just under 2%. Economists and academics express confidence that the QE will be initiated soon in order to avoid the Japanese-style deflation, as domestic economy in the Eurozone stagnated in the second quarter. Analysts at a number of banks predict the asset purchases to begin in December with a total amount of 1 trillion euros; however, the next time the Governing Council of the ECB will meet already on Sep 4.
© Dukascopy Bank SA