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ECB set to 're-examine' stimulus policy at next meeting | |
(35 minutes later) | |
The European Central Bank (ECB) says it will "re-examine" its €1.1 trillion quantitative easing (QE) stimulus programme at its December meeting. | |
It has embarked on a scheme of bond purchases at €60bn per month designed to bring eurozone inflation back up. | |
But consumer prices fell by 0.1% in the euro area in September, prompting speculation there may be changes to the bank's QE policy. | |
The comments came as the bank left its key interest rate unchanged at 0.05%. | |
'Monetary policy accommodation' | |
"The asset-purchase plans are proceeding smoothly and continue to have a favourable impact," Mr Drahgi said told a news conference in Malta. | |
"The degree of monetary policy accommodation will need to be re-examined at our December meeting." | |
The decision to leave the cost of borrowing unchanged was widely expected after the ECB cut rates to rock-bottom levels more than a year ago. | |
It kept the rate on bank overnight deposits at -0.2%, which means banks pay to keep funds at the central bank. | It kept the rate on bank overnight deposits at -0.2%, which means banks pay to keep funds at the central bank. |
The ECB also held its marginal lending facility - or emergency overnight borrowing rate for banks - at 0.3%. | The ECB also held its marginal lending facility - or emergency overnight borrowing rate for banks - at 0.3%. |
Mr Draghi also said that the eurozone inflation rate was set to remain very low in the near-term. | |
After his comments, European bond yields and the euro fell. | |
German 10-year bond yields fell 5 basis points to 0.53%, and euro fell to a three-week low of $1.1226 against the US dollar, down 1% on the day. | |