Mario Draghi

European Central Bank ‘finally ready’ to act to fight deflation

Financial markets are betting on an interest rate cut from the European Central Bank next week as low inflation, the strong euro and anaemic credit finally spur it into action.

The ECB has held its key interest rates steady at their current all-time lows since November, repeatedly promising to act if necessary to avert deflation in the 18 countries that share the euro.

Mersch says Draghi comments reflect Trichet’s 'strong vigilance’


The European Central Bank has indicated that it is close to easing monetary policy in June, according to Executive Board member Yves Mersch.

ECB President Mario Draghi’s comment on May 8 that officials are “comfortable” with taking action next month is similar to the policy signals given by his predecessor, Jean- Claude Trichet, Mersch said at an event in Berlin.

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