ECB braces for further stimulus measures
November 6, 2014
The European Central Bank (ECB) resolved to hold interest rates unchanged at a record low of 0.05 percent during its regular policy meeting Thursday.
Analysts had already expected this decision, since the ECB had said it had lowered the benchmark refinancing rate to levels "as low as possible."
ECB President Mario Draghi said the ECB aimed to increase the size of its balance sheet, which could be up to a trillion euros higher than today's level.
"[Previously announced loans and] asset purchases will have a sizeable impact on our balance sheet, which is expected to move towards the dimensions it had at the beginning of 2012," Draghi told reporters.
More loans for companies
A possible step could include quantitative easing, or printing money for large-scale bond purchases.
The ECB is waiting to see the effect of its previous stimulus measures, including cutting interest rates, offering cheap loans to banks and buying bonds based on bank loans - steps all aimed to increase the flow of credit to businesses and boost employment.
The 18-member eurozone saw no growth in the second quarter and is struggling to recover from a debt crisis, leading governments to cut spending and raise taxes.
el/hg (AP, AFP, Reuters)