Draghi stands firm on stimulus as eurozone inflation ticks up

Frankfurt

THE European Central Bank (ECB) pledged on Thursday to keep its aggressive stimulus policy at least until the end of the year, arguing that inflation pressures in the eurozone remained weak despite expectations of faster price growth.

While expected, the decision showed the ECB's leadership was resisting calls from Germany to start winding down its 2.3 trillion-euro (S$3.46 trillion) bond-buying scheme, or at least signal its intention to do so, as growth and inflation rebound.

Instead, the Frankfurt-based central bank stuck to its plan of continuing the purchases until December. Crucially, it also pledged to keep interest rates at current, record-low levels until long after that, or even cut them if necessary. "If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration," the ECB said in a …