Berlin – The European Central Bank over the next months will consider various options of ‘quantitative easing’ – also known as money printing – to counter a very low inflation rate, ECB chief Mario Draghi said Thursday (3 April) in a press conference.
“The ECB Governing Council is unanimous in its commitment to using all unconventional instruments within its mandate, in order to cope effectively with risks of a too prolonged period of low inflation,” he said.
Draghi said quantitative easing was part of a “rich and ample discussion” on Thursday among the central bankers from all 18 eurozone countries on what to do to counter the lower-than-expected inflation.
Quantitative easing, popularly known as money printing, is the purchase of financial assets from banks to increase the amount of money in circulation when there is a risk of deflation.
Draghi said there is still no risk of deflation, but stressed that the ECB was willing to act to counter low inflation, too, not just deflation.
The ECB chief blamed the low inflation on a drop in international energy and food prices and “the exceptionally late Easter” which meant that demand for services in March was lower than last year.
He also refused to give details of how the quantitative easing would work, saying just that “the ECB will work on different options, to see which would be the most efficient”.
The ECB chief also said the governing council was “unanimous in its commitment to using also unconventional instruments”.
Full article: ECB considers printing more money (EU Observer)