Germany’s Bundesbank has, in what is seen as a surprising move backed the European Central Bank’s line on taking further measures to support the eurozone economy if needed. Though it stopped short of openly supporting quantitative easing.
ECB policy makers are debating whether to take fresh action to combat the threat of deflation in the eurozone where inflation is running at 0.3percent – far below the ECB’s target of just under 2 percent.
The Bundesbank in its monthly report echoed the language of the ECB President Mario Draghi who has talked of using further unconventional measures if needed.
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