This week all eyes were on the European Central Bank (ECB),which was set to assume its interest rate decision on Thursday. The market was hoping that ECB president Mario Draghi would announce measures to combat low inflation in the eurozone. Yet at a mere 0.25%, there is very shrimp scope to lower interest rates even further. What the ECB can do, and however,is to buy bonds issued by banks in exchange for cash. This way, inflation will be fuelled as billions of euros are injected into the economy.
Source: abnamro.com