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ECB to make blunt euro zone’s economic depression

ECB to make blunt euro zone’s economic depression

FRANKFURT: European Central Bank (ECB) will make blunt the euro zone’s economic depression after it meets with a rare public call from Washington adding to pressure for action to stop the bloc going into reverse on Thursday.

Vice President ECB Vitor Constancio said the bank will be better able to evaluate then whether it needs to buy such debt. Economists, roughly half of whom expect the bank to start buying government bonds a step that should buoy the economy when banks exchange bonds for ECB cash have penciled this in for the first three months of next year.

ECB President Mario Draghi will present with recovery stalled across many of the 18 countries that share the euro fresh growth and inflation forecasts from bank staff.

Stanley Fischer Draghi’s academic mentor at university told if the ECB moves in that direction, it will have positive effects. Mounting concerns about the euro zone economy were underlined by Fischer US Federal Reserve’s influential vice chair broke with etiquette to say that money printing would help Europe as it had the United States.

The ECB could extend a scheme to buy secured debt to include corporate bonds and it is unlikely he will announce any money printing to buy government bonds.

Germany’s appointment to the ECB’s Executive Board Sabine Lautenschlaeger said that now was not the time for state bond buying. But Draghi faces considerable political obstacles to taking this step, chiefly from a reluctant Germany.