Monexnews - European Central Bank (ECB) has repeatedly affirmed its commitment to assist the recovery area. Appropriate its role, the European monetary authorities can take on the role as a motor controller liuiditas stream banks.
The ECB contributions can be implemented by cuts key interest rate at today's meeting. Given the many euro zone economic indicators released negative in recent months. ECB expected to cut interest rate to 1.00%, marking the adjustment rate for the second time in two months.
"The conditions today are very supportive to the discourse of ECB quantitative easing," said Clemente de Lucia, economist at BNP Paribas. This is where the central banks role play, and should become the main agenda of Mario Draghi press conference the next few hours. There is absolutely no reason for the board of governors for not cutting interest rates today. Perhaps the only obstacle now is the inflation rate is consistently above the regional target. Annual inflation was at its highest level in three years, which is 3%, for three consecutive months until November. The level is still above the threshold that defines the central bank as an inflation level of 2% secure. But some economists and the ECB itself convinced that inflation could meet target next year due to economic slowdown and high unemployment.
Another agenda is no less important is a matter of policy the European bond purchases. It is worth awaited whether the central bank will purchase bonds instantly gave the signal is greater or even silent until the official fiscal reforms enacted. Although the action of the entire stock of bonds is required, the level of yield fairly conducive recent weeks.
The other agenda is a European bailout fund expansion program that circulation is said to be held by the ECB. But Draghi still have to coordinate with the International Monetary Fund (IMF) related to the launch mechanism and authority over the new stimulus funds.
