Several central bankers, economists and market participants have been voicing concern over the threat of deflation in the eurozone. During the previous ECB press conference, Mario Draghi made some comments regarding quantitative easing in the eurozone (there were 8 mentions by Draghi, all in all). However, he was very reserved about the matter, he said the matter of QE had been discussed during the governing council meetings, but no decisions had been made. He emphasized the fact that inflation was temporarily subdued arising from a fall in the cost of imported energy. The long term target inflation rate for the ECB is no more but slightly lower than 2%, the recent figures put the inflation rate at 0.5%. He did not mention any figures regarding QE, but numerous sources expect the figure to be around one trillion euros and in coming weeks we could expect some major developments by ECB on this issue.
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