As reported by the Bloomberg news service, President of the European Central Bank Mario Draghi once again hinted at additional monetary easing. As a result, the single European currency extended its decline versus the US dollar, knocking off some of the earlier gains from a three-day rally. According to Draghi, the current measures within the scope of the ECB’s monetary policy are not enough to reach the goal set by the central bank. The official pledged to do whatever it takes to boost inflation as soon as possible.
At the same time, Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London, believes that the ECB will attempt to readjust its monetary policy once again by means of extending and/or expanding its quantitative easing program. The possibility of another cut to the deposit rate cannot be ruled out as well, the expert says.
The Eurostat estimates suggest that consumer prices in the eurozone increased by 0.1 percent in October compared to the previous month and added 0.1 percent on a year-over-year basis. Meanwhile, the annual inflation target determined by the European Central Bank stands at 2%.
