Europe is gearing up to pump a huge amount of money into their economy.
With concerns about the European economy only continuing to grow, the European Central Bank is poised to make a big move to get the market back on trap.
The ECB is expected to announce a new stimulus measure at its policy meeting scheduled for this upcoming week with inflation dipping into the negative and a bleak economic situation, according to an Agence France Presse report.
The ECB had made some money pumping moves back in December, but they were perceived by many to be weak. This time, ECB chief Mario Draghi intends to make a much bolder attempt to jump start the European economy. This could include a slash in interest rates and an increase in bond buying.
Inflation dropped to minus 0.2 percent last month, the first time it had dipped into the negative in five months and a worrying sign that the problems were only deepening for Europe. The world economy overall has a lot of uncertainty, and there’s concern that the monetary stimulus by Europe won’t do much with the financial volatility out there.
“Given that the ECB reference rates are provided as a public good for individual citizens and institutions, it is essential to safeguard a high level of integrity and to underline that they are intended to be used solely as a reference for information rather than when making transactions,” said ECB Executive Board member Benoît Cœuré in a December statement during the last ECB move.