Headline in the UK’s Sunday Times: ECB injects billions into eurozone as recession fears grow
The (gated) report says:
Mario Draghi “is set to pump hundreds of billions of euros into the stagnating continental economy this week as he battles to stave off deflation”
It goes on:
- Negative interest rates are expected to be introduced,
- A slew of other stimulus measures is expected to be unveiled
- ECB may buy packages of loans from struggling banks to free up their balance sheets
- It could also subsidise loans for small companies through a system similar to George Osborne’s Funding for Lending Scheme
- Says ECB buying of government bonds (QE) is not likely, this ‘could be held in reserve’
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More evidence of the very high expectations going into Thursday’s meeting.