The European Central Bank (ECB) is outlining a number of measures designed to boost confidence and the economy across the eurozone.
Bank president Mario Draghi stated that the ECB was looking at methods that will help to revitalise the financial situation across the member states. His comments came after the ECB confirmed that it would be holding eurozone interest rates at 0.05 per cent. Mr Draghi added that there will be a review of the impact of the stimulus measures in early 2015.
The ECB president explained: "Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council remains unanimous in its commitment to using additional unconventional instruments within its mandate. This would imply altering early next year the size, pace and composition of our measures."
Countries across the eurozone have been feeling the pinch in recent months with some of the most powerful nations enduring testing times. In November, Germany narrowly avoided falling into recession after its economy saw a 0.1 per cent growth in the third quarter of the year. Had it contracted, it would have hit a recession.
The figures released by Eurostat earlier in the year had shown that Germany's economy had shrunk by 0.1 per cent in Q2 but benefited from a slight growth in the following quarter to prevent a recession. The third quarter provided some respite for the eurozone with France posting strong-than-expected figures of 0.3 per cent growth, allowing the region to grow by a total of 0.2 per cent.
ECB estimates for the coming year had been revised down to bring it inline with an earlier European Commission forecast. The bank now expects the eurozone economy to be boosted by one per cent during 2015 while this grow to 1.5 per cent throughout 2016.
Find up to date information on spread betting strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.