Draghi says ECB has plenty of instruments to boost inflationJanuary 22, 2016 - 14:43 AMT PanARMENIAN.Net - European Central Bank head Mario Draghi says the eurozone's monetary authority has "plenty of instruments" available to boost inflation that's too low. He added that the bank's governing council has "the determination and the willingness and the capacity... to act and deploy these instruments." Draghi made the comments Friday, Jan 22, during a question and answer session at the World Economic Forum in Davos, Switzerland. A day earlier, the bank left its key interest rates and bond-purchase stimulus unchanged — but indicated that it would look at more stimulus at its next meeting March 10. Annual inflation of only 0.2 percent in the 19 countries that use the euro currency is far below the bank's goal of just under 2 percent considered best for sustainable growth and jobs. Draghi didn't say what instruments might be used. At its Dec 3 meeting, the bank extended its 60 billion euros in monthly purchases of bonds by six months to March 2017. The purchases stimulate the economy, in theory, by pushing newly printed money into the financial system in hopes banks will lend it. It also cut the interest rate on deposits from commercial banks to minus 0.30 percent from minus 0.20, a move that penalized banks for hoarding money in hopes they will lend it instead. The central bank is also offering unlimited, cheap credit to banks. Europe's economy is growing modestly and unemployment is high at 10.5 percent but falling. Steep falls in the price of oil, however, have undermined ECB efforts to push up inflation. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. Ucom General Director gives lecture at French University in Armenia The General Director of Ucom Ralph Yirikian delivered a lecture at the French University of Armenia. Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. |