ECB under pressure to ease growth, inflation fears

June 6: European Central Bank chief Mario Draghi is expected to outline plans on Thursday to offer fresh assistance to banks and hint at further options to counteract rising worries about growth and inflation in the eurozone.

“Market participants will turn to Mario Draghi for any new hint at how exactly all (the) ECB's instruments could be implemented, if needed,” said Frederik Ducrozet, a strategist at Pictet Wealth Management.

At his 1230 GMT press conference, Draghi is expected to repeat his April stance that the bank stands ready to open its “toolbox” that contains “plenty of instruments” to respond to any downturn.

After a weak patch for the eurozone in late 2018, economic expansion bounced back between January and March, gaining 0.4 percent from the last quarter.

That should normally be good news, with faster growth accelerating inflation towards the central bank's price stability target.

However, trade tensions between the United States and its main partners China, the European Union and Mexico have stoked fears that a hoped-for stronger second half to 2019 will not materialise.

AFP/APP

Posted on: 2019-06-06T10:05:00+05:00

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