Forget about the European Central Bank’s decision on interest rates at 12.45 GMT: policy makers will almost certainly leave those untouched.
Instead, pay attention to what Mario Draghi says at the press conference that follows at 13.30. The ECB president’s promise to tackle low inflation “without delay” has raised hopes that policy makers are close to a decision on extending its bond buying from asset-backed securities and covered bonds to include corporate and sovereign debt. A few expect action as early as today, largely in the form of more corporate bond buying. Most don’t think anything will happen until the new year.
Here are four things to watch for at today’s press conference.
By Gideon Rachman
What should western politicians be most worried about: growth, inequality, the environment, education? To judge from today’s discourse, the answer seems to be none of the above. Instead, in the past month, both Barack Obama, US president, and David Cameron, UK prime minister, have made big speeches on immigration. At the weekend Swiss voters rejected a proposal virtually to end the flow of incomers to their country. But anti-immigration parties have made strong gains in a variety of other European nations, including Sweden and Italy, in the past year.
US foreign policy after Chuck Hagel’s resignation
This week Chuck Hagel stepped down as US defence secretary at a time when doubts are growing about the administration’s ability to manage growing threats in the Middle East and Europe. Gideon Rachman discusses what the resignation means for American foreign policy with Geoff Dyer and Ed Luce.
For the past 15 years, there has been little good to say about Italy’s economic performance, and even less about the quality of Italian political life.
Yet one Italian institution emerges with its reputation unscathed – and even strengthened – from this long spell of incompetence, corruption and decline.
I am speaking of the presidency. Carlo Azeglio Ciampi, who served as head of state from 1999-2006, and Giorgio Napolitano, his successor and the current president, have exemplified everything that is dignified, decent and honourable about their country. Their behaviour in office has put the squabbling and self-serving political classes to shame – and it has preserved respect for Italy among its allies and partners abroad. Read more
By Gideon Rachman
This weekend America announced that it was sending more troops to Iraq, Russia allegedly sent more troops into Ukraine and President Barack Obama set off for Beijing.
November’s press conference by European Central Bank President Mario Draghi comes a week after the US Federal Reserve ended its monetary stimulus programme, and the Bank of Japan put a rocket booster under its already large volumes of bond buying.
In contrast, investors and analysts are expecting the ECB’s monetary policy committee to sit tight this month. It has announced that rates remain at a record low and predictions are for no change in its private-sector asset buying programme. But with eurozone deflationary fears showing no signs of receding in the stagnating economy, investors will be wanting Draghi to instil confidence in markets that he has his own bazooka ready to fire. By Lindsay Whipp and Emily Cadman