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Draghi's BAZOOKA of cash to SAVE the EU: ECB's desperate bid to avoid crisis

Economy:
Draghi's BAZOOKA of cash to SAVE the EU: ECB's desperate bid to avoid crisis

INTEREST rates could be cut in Europe and billions of pounds worth of extra cash injected into the ailing economy next week, amid growing fears of a financial cries on the continent.

On Thursday the head of the European Central Bank (ECB) Mario Draghi is expected to reveal measures to stop Europe's economy from collapsing, after a number of key indicators have recently painted a dark picture of the situation.
Dire manufacturing and service figures emerged this week, coupled with a confirmation that the eurozone had fallen back into deflation.
It comes after Mr Draghi already warned in January that uncertainty about global growth had jumped.
The ECB president raised concerns about China, low inflation and falling oil prices, as stock markets in Germany, France and Spain took huge hits.
He then heavily hinted that the Bank's policy could be changed in March to stop the European economy from sinking.

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Since then concerns have jumped over the stability of some of the bloc's biggest banks, with major banks including Deutsche and Societe Generale seeing huge falls in share prices.
It's now widely expected more cash will now be pumped into the economy through Quantitative Easing - in effect printing extra money.
But he could also turn interest rates negative in a desperate effort to kick-start growth.

Draghi's BAZOOKA of cash to SAVE the EU: ECB's desperate bid to avoid crisis

However, investors are increasingly sceptical that the ECB can do what it to takes to rescue the economy.
Italy, Greece and Portugal continue to struggle under the burden of debts, while France battles to improve growth and employment prospects.
Negative interest rates could make it more difficult for banks to turn a profit and such a move by Mr Draghi could see the return of concerns over the solvency of major finance institutions.

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08 March 2016, 22:49