UK press – “ECB injects billions into eurozone as recession fears grow”

Author: Eamonn Sheridan | Category: Central Banks

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’

More evidence of the very high expectations going into Thursday’s meeting.

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