For those who still had their doubts, Handelsblatt’s interview last week with Mario Draghi seemed to end them: quantitative easing is coming to Europe.
The European Central Bank’s president fired up the expectations of financial analysts and investors that such a program, which would involve buying hundreds of billions of euros in government bonds, could be announced as early as January 22, the date of the Frankfurt-based central bank’s next meeting.
Mr. Draghi pointed to a dangerous spiral of falling prices and falling demand for goods in the euro zone currency bloc, which since the start of this year counts 19 countries among its members. “The risks of not fulfilling our mandate of price stability are in any case higher than they were six months ago,” he said, adding that the central bank has already begun “technical preparations” for its next move.
“Mr. Draghi’s comments lead us to believe that the ECB will announce a bond buying program at its next meeting,” Ulrich Leuchtmann, an analyst with German bank Commerzbank, told Handelsblatt.