ECB's Draghi: QE to start on deterioration of inflation expectations

FXStreet (Bali) - ECB’s president Mario Draghi, quoted in an interview with Dutch newspaper De Telegraaf over the weekend, said that large-scale asset purchases could be contemplated but for now will continue with existing stimulus measures.

Dragi, when asked about what would be the trigger to embark on fresh assets buying, said: "That would be the answer to a deteoriation of inflation expectations over the medium term. However, at the moment we are focusing on the measures announced on June 5th."

Draghi added: "Quantative Easing can include not only govt bonds but also private sector loans. We will discuss that when the time comes."

The ECB president also said that the "Eurozone recovery still weak, uneven and vulnerable, disruptions in global economy could “quickly change the situation”, and interest rates would stay low over a longer period."

"We have prolonged banks’ access to unlimited liquidity up to the end of 2016. That is a signal. Our programme in support of bank lending to businesses will continue for 4 years. That shows that interest rates will remain low over a longer period", Draghi added.

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