Draghi hints more QE may be needed
Duncan Richardson, News Editor
22 Jan 2016, 3:42 p.m.
Despite printing billions of Euros ECB President Mario Draghi is prepared to increase the size of ECB quantitative easing program and keep interest rates at zero for longer. Draghi said, there were “no limits” as to how far the ECB will go to ensure inflation is created throughout the 28 member Eurozone.
Inflation is currently running way below the Central Banks 2% target and unemployment remains stubbornly high.
Draghi told reporters the global economy had weakened and downside risks have increased. 60% of economists surveyed by Bloomberg expect the ECB to increase the size of monthly asset program when the ECB meets in March. Historically, the gold price rises when central banks increase the money supply.
European shares rose immediately following the announcement ending a disappointing week for global shares indexes. Gold is currently trading at £769.79 per ounce, silver £9.91 per ounce, platinum £579.91 per ounce and palladium £355.27 per ounce.