Europe’s Central Bank, Lagging Its Counterparts, Faces Eventful 2018
The European Central Bank’s Governing Council set a course for 2018 when it announced plans in October to scale back the purchases of government and corporate bonds
that it has been using to hold down interest rates and stimulate inflation.
Mr. Draghi’s news conference Thursday will most likely be dominated by questions about
what 2018 holds for the eurozone economy and how the central bank would react.
It could mark the end to the crisis measures that have been in place in the eurozone since 2008,
and the beginning of a new era — with monetary policy returning to normal and the central bank beginning to gently push up interest rates.
Expectations are low that Mario Draghi, the bank’s president, will make news on
Thursday when he meets with reporters at the bank’s final meeting of 2017.
The bank’s outlook on the state of the eurozone economy will be clearer Thursday, when
its in-house economists issue their latest forecasts for growth and inflation.
The estimates do not necessarily reflect the views of Mr. Draghi or all members of the Governing Council,
but are closely watched for hints of where the bank thinks the economy is going
The bank said it would keep buying bonds at a reduced rate at least through September, and left open the door for continued purchases after that.