Only QE left on Draghi’s table

EUROPEAN Central Bank (ECB) president Mario Draghi made it clear yesterday that there would be no further cuts in interest rates, with only full-blown quantitative easing (QE) left as a major option for easing policy.

Until now the ECB “sterilised” its Securities Market Program, trying to offset their own purchases of government debt, so that there would be no overall change in liquidity. From now on, it will not try to lean against the purchases.

“If the various measures unveiled today don't move the euro, boost activity and push-up inflation... the ECB is prepared to move further into the world of unconventional policy,” said Jefferies’ David Owen.