European Central Bank president Mario Draghi is set to reveal details of an ambitious plan to buy hundreds of billions of euros of repackaged debt in order to kick-start bank lending. The ECB’s monthly press conference, held in Naples, Italy, takes place against a backdrop of growing concern about economic stagnation as growth in the eurozone stutters to a halt.
By Ralph Atkins and Claer Barrett
The Bank of England will weigh the weakness of Britain’s wage growth against the strength of its economic recovery when it delivers fresh forecasts in its quarterly inflation report on Wednesday morning, containing signals about when a rise in interest rates is likely.
<To be delivered in tandem with the latest UK employment data, the BoE’s estimates of the amount of slack in the economy will be one of the most closely watched metrics. At the last quarterly inflation report in May, the BoE estimated the amount of spare capacity was between 1 – 1.5 per cent, judging there was room for this to narrow further before rates tightened.
By Sarah O’Connor and Claer Barrett