European Central Bank (ECB) chief Mario Draghi has shed a positive light on the success of the central bank's quantitative easing programme to date.
During a speech in Milan today, he said the security-purchase scheme implemented so far was “undoubtedly effective”.
Launched earlier this year, the programme involves the purchase of government securities from Eurozone member states. Draghi hopes this will indirectly encourage consumer and business spending in an economy.
However, he said the programme might not be appropriate for much longer, and that the governing council will review the situation in December.
“We are in front of a situation where the price trend is very weak, the macroeconomic environment is still uncertain,” he said.
We must consider whether, with the weakening of the world economy, it is also effective in countering adverse pressures that could hinder a return to price stability over the medium term.
If we were to become convinced that this is not the case, we will examine ways in which to intensify it the programme to achieve our objective.
He added that if QE was brought to an end, the ECB would still have “many tools” at its disposal, and would “not be constrained” in its ability to act.