ECB needs to factor in inflation as it prepares to wind down stimulus

Frankfurt

THE European Central Bank must take into account the weakening of inflation due to the strong euro as it prepares to wind down its unprecedented stimulus programme, ECB chief Mario Draghi said on Thursday.

Mr Draghi was speaking after the ECB kept rates at record lows and confirmed that asset purchases would continue at 60 billion euros (S$96.6 billion) per month at least until December, suggesting a long-awaited tapering of stimulus could come more gradually than some market players currently anticipate.