European Central Bank is unlikely to take new policy action next week unless August inflation figures, due on Friday, show the euro zone sinking significantly toward deflation, ECB sources said.
Speculation has grown since ECB President Mario Draghi struck a dovish tone at the Jackson Hole central bankers’ meeting last week that the ECB could be moving closer to quantitative easing (QE)—or printing money to buy assets.
Departing from his original speech text, Draghi noted in his Jackson Hole speech last Friday that “financial markets have indicated that inflation expectations exhibited significant declines at all horizons” in August.
CNBC
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