situation report

Aug 16, 2019 | 13:08 GMT

1 min read

EU: ECB to Announce New Stimulus Package in September Meeting, Finnish Central Bank Chief Says

What Happened: The European Central Bank (ECB) will announce a new stimulus package at its monetary policy meeting next month, Finnish central bank head Olli Rehn told the Wall Street Journal in an interview on Aug. 15. According to Rehn, the measures will include interest rate cuts, as well as substantial bond purchases and perhaps even equities.

Why It Matters: Rehn's comments are consistent with previous statements from ECB President Mario Draghi, who said the bank was considering a stimulus package in September. Slowing growth in the eurozone, ongoing uncertainty over the U.S.-China trade war and Brexit have all raised pressure on the ECB to intervene and provide additional stimulus.

Background: During a press conference in July, Draghi suggested that the bank was considering a new stimulus package to boost economic growth in the eurozone. Meanwhile, economic growth in the currency bloc remains lackluster, as gross domestic product grew by just 0.2 percent in the second quarter year on year.

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