The stimulus measures announced by the European Central Bank this month are largely aimed at boosting lending to households and businesses to support the euro area recovery and the bank does not lack tools to bring inflation back to its target of near 2 percent, ECB Executive Board Member Benoit Coeure said Monday.
In a speech in Paris, Coeure said, “The measures we announced on 10 March 2016 form a very substantial package which gives priority to loans for households and businesses, and thus supports the recovery.”
“They underline our determination to fulfill the mandate entrusted to us by the people of Europe: to bring inflation back to nearly 2 percent, and they show that we have no shortage of tools.”
Earlier this month, the ECB announced a slew of stimulus measures for the euro area economy, that included a cut to all three of its interest rates and an expansion to its asset purchase programme.
The bank also announced a new round of longer-term financing operations and decided to include investment grade non-bank debt in its list of eligible assets for purchases.
The material has been provided by InstaForex Company – www.instaforex.com