Mario Draghi

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Mario Draghi said the ECB had cut off>its forecasts for inflation and Economic Growth

Central Bank 's fresh stimulus unveiled measures to strengthen the eurozone, including cutting a key interest rate.

The Deposit facility rate paid by banks on reserves parked at the ECB, was already negative, but this has now been cut, from minus 0. 4% minus 0. 5%.

it was the re-Start of quantitative easing. It will buy €20bn of debt a month from the 1. November.

The eurozone's key interest rate remained unchanged at zero.

The trains come as the ECB is fighting against an economic slowdown. The Bank said its asset-buying program "would lead you as long as necessary", while interest rates would remain "at current or lower levels", to The Euro -zone inflation to its target rate of 2%.

Quantitative easing, or QE, is a way for the Central banks pumping money into the financial system if interest rates are extremely low and conventional stimulus methods no longer work.

The Central Bank buys assets, usually government bonds, with money it has "printed" - or, more precisely, created electronically.

you will Make more money available, this way is to give financial institutions, to encourage, to do more, and private individuals.

Under its current QE program of the ECB, the 2€ bought. 6 trillion in bonds between 2015 and 2018.

The Euro Zone's largest economy, Germany, is thought to be on the verge of a recession

ECB chief Mario Draghi said at a press conference that the inflation Outlook was further downgraded.

"Headline inflation is expected to go back before they straightened up again, against the end of the year," he said.

Mr Draghi also announced that the ECB had lowered this year and next year GDP growth forecasts for the eurozone. It now expects growth of 1. 1% this year and 1. 2% in the year 2020.

He said, the eurozone suffers from a "prevailing weakness of International Trade , in an environment of continuing global uncertainties".

The Euro Zone's largest economy, Germany, is widely thought to be on the verge of a recession.

The decisions of the ECB, a quick response of U.S. President Donald Trump , who tweeted drew, to try that the ECB ", and success, in the depreciation of The Euro against the VERY strong dollar".

Responding to Mr Trump's comments, Mr Draghi referred to it as the "First tweeter".

"We have a mission, we're in pursuit of price stability, and we have no destination, exchange rates, time," he said.

'Serious easing,'

Mr Draghi is due to the way for the future President of the ECB, Christine Lagarde , on 1. November.

The ECB's key interest rate, already at zero for March 2016.

"At first glance, has thrown the ECB in whole, the sink on the economy in the eurozone", says Ranko Berich, head of market analysis at Monex Europe.

"The QE is the shy of the market expectations, which were €30 billion per month. But The Bank is clearly back in The Business of serious policy easing and more aggressive action could easily be taken in response to a deterioration in the conditions. "

Analysis

By Andrew Walker , BBC economics correspondent

So, the ECB has fired another salvo of their Monetary Policy ammunition. But it will hit The Target ? You get inflation towards the ECB target, and it will stimulate the eurozone's flagging economy? Many people are very skeptical.

The interest rate move, leads us further into the Strange World of negative rates. There is a view that this measure is actually counterproductive, that it will have a negative impact on the profitability of the banks. Perhaps the ECB has used policy reaches the limit of its ability to stimulate economic activity.

The Other main weapon against the economic weakness in the hands of governments, fiscal policy, or public expenditure and taxation. For some governments in the eurozone to use their scope, the weapon is limited by the amount of debt you already have, and by The Euro -Zone rules. But, the likely next head of the ECB, Christine Lagarde called for more action in this area.

countries such as Germany have strong government finances, but are very careful at the time of departure of what they see as prudent Financial Management . However, there is a growing debate about what needs The Euro -Zone.

europe economy, european central bank (ecb), eurozone, economics

Source of news: bbc.com