ECB sees possibilities for further easing

ECB sees the possibilities for further easing measures as it reckons such measures are required. The central bank will be hesitant to make its move on increasing negative inflation over the months and declining oil prices.

Low inflation caused by plummeted energy and commodity prices should not be a concern for the ECB. However, with low inflation over a prolonged period of time, combined with subdued core inflation and declining inflation expectations adds on to ECB worries, as headline inflation dropped below target.

Earlier in December, Draghi implied that increasing low inflation was a major concern to the ECB and wanted to accelerate the process of inflation towards 2 percent by further policy easing. Referring to the Asset Purchase Programme (APP), Draghi stated that the ECB was in the process of reviewing some of the technical parameters of APP in the spring, such reviewing point towards March as the month we can expect some major announcement from the ECB.