nvestors seized on Draghi’s comments and bet that the Bank of Japan might also ease policy further next week while the Federal Reserve goes slow in raising U.S. rates this year.
“With inflation so low, it would be strange if central banks didn’t do more in the face of such market turmoil and elevated risk factors,” said John Reid, strategist at Deutsche Bank in London.
“It won’t be a major growth stimulant, but any extra liquidity provided will have to go somewhere, so it’s too early to say the central bank era of elevating asset prices is over,” he said.”