Tags: EU | Europe | Interest | Rates

Draghi Takes over ECB as Eurozone Mess Worsens

Wednesday, 02 Nov 2011 09:45 AM


Mario Draghi holds his first news conference as new head of the European Central Bank under pressure to signal that it will continue buying government bonds to keep Europe's debt crisis from worsening.

A surprise interest rate cut is also not ruled out as Draghi takes over. He is facing an array of problems: weakening growth, excessive inflation and uncertainty over whether a bailout for heavily indebted Greece will go through or be derailed by a proposed referendum.

The bank's key rate stands at 1.5 percent.

Markets are waiting to see if Draghi will be more aggressive in supporting troubled governments such as Italy and Spain than predecessor Jean-Claude Trichet, whose eight-year term expired.

Trichet said the purchases were a temporary measure.

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