ECB cuts interest rates and restarts bond-buying – comment

“The ECB has just announced its decision to restart its asset purchase programme (APP) this November, in which €20bn of bonds are set to be purchased each month. Meanwhile, Mario Draghi’s decision to lower the deposit rate for the first time since March 2016, signals towards the ECB’s efforts to kickstart the euro area’s growth engine and bring inflation back closer to the 2.0% target. The euro zone’s latest monetary decisions highlights the rising macroeconomic and political risks across the region and affirms our most recent global economic outlook trend downgrade, shifting from ‘stable’ to ‘deteriorating’ in September.”

Ediz Fahri, Senior Economist, Dun & Bradstreet