ECB could announce stimulus scale-back as soon as next month- Nikkei Asian Review 9/7/17, 3:13 PM

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ECB could announce stimulus scale-back as
soon as next month
September 8, 2017 4:58 am JST
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ECB could announce stimulus scale-back as choke collar

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FRANKFURT, Germany (AP) -- The European Central Bank could be ready Putin, Abe vow teamwork to rein in North
Korea
as soon as next month with plans to finally start scaling back its
more
extraordinary stimulus efforts as the eurozone's economy gathers speed.

President Mario Draghi said Thursday that the bank is reassessing the bond-
buying program, which is credited with boosting growth by reducing
borrowing rates, and could announce changes as early as next month.

At a press conference after the bank's 25-member governing council decided

to leave its interest rates and bond-buying program unchanged, Draghi said
the ECB will soon decide on the "calibration" of its policy instruments
beyond 2017.

"We think we are going to be ready for much of what we have to decide in
October," said Draghi. "If we are not, then we postpone." Receive our newsletters

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Investors took Draghi's statement as a hint that the bank may outline a
strategy on reducing its monthly asset purchases at its Oct. 26 meeting. The
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euro jumped 0.9 percent to $1.2022.
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Strong economic growth in the eurozone has ratcheted up expectations that
the bank, which sets interest rates for the 19 countries that use the euro, will The latest headlines tweeted Follow @NAR

soon start to phase out its bond-buying program. The stimulus involves the
bank purchasing 60 billion euros ($72 billion) of bonds a month in the Editor's picks
markets in order to keep interest rates low and get inflation up to its goal of
Toshiba Memory bidders vie
just under 2 percent, a level considered healthy for the eurozone economy. for Apple's support

While growth has picked up to 0.6 percent in the second quarter, annual
inflation in August was still only 1.5 percent. US seeks to yank harder on
North Korea's choke collar

Phasing out bond purchases would begin the withdrawal of stimulus

measures aimed at overcoming the aftershocks of the Great Recession and How China's answer to Silicon
Valley attracts young talent
the eurozone's crisis over high bank and government debt. The economy has

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ECB could announce stimulus scale-back as soon as next month- Nikkei Asian Review 9/7/17, 3:13 PM

shown steady growth since the second quarter of 2013 but suffered through a Tangled interests keep
stretch of low, even subzero, inflation that raised fears of a chronic Myanmar's Asian partners
mum on Rohingya
downward spiral in wages and prices. Draghi says that danger is now over.
In first, 3 Asian schools crack
Draghi said, however, that a "very substantial" degree of support from Times Higher Education top
30
monetary policy was still needed for the time being. He has been reluctant to
spell out the timing and pace of the phase-out of the bond purchases for fear
of sending the euro and market interest rates higher ahead of the fact. That Print Edition
kind of market reaction would blunt the impact of the stimulus before it has Inside the fight for the
soul of Infosys
run its full course.
Trouble for Indian
outsourcers is
The euro's recent rise has complicated the ECB's mission, as the stronger opportunity for US
rivals
currency can hurt eurozone exports and lower inflation. On the currency,
Draghi said the recent exchange rate volatility, which has seen the euro rally
about 15 percent this year to breach the $1.20 mark for the first time in two
and a half years, "requires monitoring" and is a source of "uncertainty."
See all issues

Though not a specific target, Draghi said the exchange rate is "very
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important" as it affects the rate of inflation, the bank's chief policy concern.
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ECB could announce stimulus scale-back as soon as next month- Nikkei Asian Review 9/7/17, 3:13 PM

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