Some analysts have calculated that the European Central Bank cannot buy much more debt without exceeding levels that would grossly distort the market or invite legal challenges. But Mr. Draghi said Tuesday there is still “considerable headroom” for more bond purchases. The central bank’s benchmark interest rate is already zero, and cannot go any lower. However, Mr. Draghi said the bank could increase the so-called negative interest rate on commercial banks’ deposits at the central bank. “If we are to deliver that value of inflation in the medium term,” he said of the 2 percent target, “inflation has to be above that level at some time in the future.”

Source: International New York Times June 18, 2019 12:04 UTC