March ECB buys every month assets for 60 billion. Euro in an attempt to revive inflation. Chief economist at Bank Peter Praet said last week that the financial institution is willing to do more as the risks that the ECB may not reach its target for inflation, increased.
But unlike previous years, when weaknesses in the eurozone countries were the main factor influencing inflation is now the main external, which the ECB can hardly influence. Oil prices fell by nearly 40% since May, while the price of iron ore is close to its lowest level in history because of concerns that the Chinese economy will continue to slow down.
While the economic picture remains positive in the euro area, the ECB may be reluctant new actions, economists said.
“The ECB will be forced by the current market turbulence to extend or increase its program of quantitative easing,” said PIMCO portfolio manager Andrew Bosamuart. According to him, it is too early to say how this will affect the eurozone, the slower growth in external demand from emerging markets, especially so in China.