FRANKFURT, Germany (AP) – Investors will look for clues Thursday on whether the European Central Bank will extend its 1.74 trillion euro ($1.91 trillion) bond-buying stimulus program beyond its earliest end date of March, 2017.
Analysts say the bank is unlikely to announce a decision at its meeting of its 25-member governing council, or to change its main interest rate benchmark, currently at a record low of zero. Any action is considered more likely in December.
ECB President Mario Draghi’s remarks at his post-meeting news conference will be scrutinized for hints about the possibility of extending the 80 billion euros in monthly purchases.
The purchases pump new money into the financial system. The aim is to nudge up inflation from its current annual rate of 0.4 percent, far below the bank’s goal of just under 2 percent. That’s the level considered most consistent with a healthy economy.
The 19 countries that use the euro as their currency are enjoying a moderate recovery, with growth at 0.3 percent in the second quarter. But unemployment remains high at 10.1 percent and is falling only slowly.