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Draghi needs to perform juggling act in face of economic uncertainty

The ECB chief is expected to widen negative rates, but negative rates have dented bank profitability and may dampen stockmarket sentiment and business confidence
Tuesday, March 8, 2016 - 05:50

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Stock and bond market prices are already reflecting expectations of lower negative rates and an increase in QE. The big question is whether Mr Draghi has something extra to allay uncertainty facing Europe.

London

THE markets expect the European Central Bank (ECB) to widen negative interest rates, currently at -0.3 per cent. The bet is for at least a further -0.1 percentage point, while the ECB could accelerate quantitative easing (QE) by raising the monthly purchases of European bonds from

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