The European Central Bank left its main interest rate unchanged Thursday despite evidence that the Eurozone’s economy remains weak with low inflation and unemployment stuck near a record high. However as CCTV’s Jack Barton reports the bank’s president Mario Draghi said the ECB is considering other stimulus measures and has not ruled out large-scale purchases of financial assets like the ones carried out by the U .S. Federal Reserve.
The European Central Bank kept its key lending rate at its current record-low on Thursday. But with inflation continuing to fall the bank’s president Mario Draghi insisted all options remain on the table.
That includes the possibility of ultra-cheap loans to the banking sector or even the sort of quantitative easing seen in the U .S. Britain and Japan.
The Eurozone’s annual inflation rate dropped to half a percent in March a five-year low and about a quarter of the ECB’s target. Near record high unemployment, tepid growth, lingering overcapacity and falling energy prices have all played a part. The Euro’s surge in strength has also made imports cheaper, pushing down consumer prices even further, adding to deflationary fears. The markets and many politicians are growing impatient.
Low inflation also makes repaying government debt more costly so analysts say a crossroads is fast approaching.