Mario Draghi arrives at the ECB forum in Portugal. His comments pushed the euro lower against the dollar HORACIO VILLALOBOS/GETTY IMAGESThe European Central Bank will slash interest rates and relaunch quantitative easing if inflation fails to pick up, Mario Draghi has pledged, in words that enraptured equity markets and enraged the US president. The ECB president said that he would “use all the flexibility within our mandate to fulfil our mandate”, in a reprise of his famous 2012 commitment to do “whatever it takes”, widely considered to be the moment that the eurozone’s fortunes turned. “In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required,” he said. Mr Draghi’s doveish comments sent global bond and equity markets soaring and pushed the euro 0.5 per cent lower to $1.12, drawing a furious response from…

Source: The Times June 18, 2019 22:52 UTC