ECB Weighs Future of Stimulus, but Its Path Is Complicated by a Strong Euro

Wall Street Journal, Sep 7, 2017
by Paul Hannon and Tom Fairless

FRANKFURT—The European Central Bank has begun to consider how quickly it will reduce its purchases of government bonds in 2018, and the pace of tapering will depend in part on the euro’s strength, Mario Draghi said Thursday.

The eurozone economy has grown more strongly this year than policy makers had expected, and the central bank’s economists again raised their forecast in new projections revealed by the ECB’s president.

They now expect the currency area’s gross domestic product to be 2.2% higher by the end of December than it was a year earlier. If they’re right, that would be the fastest expansion since 2007, before the global financial crisis crashed economies around the world.

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