REUTERS
The European Central Bank (ECB) is on course for more aggressive monetary easing to boost flagging growth and weak inflation, amid fresh warnings about the outlook for the global economy, according to The Financial Times.
Mario Draghi, the ECB president, has won wide support for further policy action next month, according to minutes of the bank's January policy meeting, released on Thursday, The Financial Times reported.
The minutes show the governing council was unanimous in concluding that its current policy stance "needed to be reviewed and possibly reconsidered" in March, when the ECB's quarterly macroeconomic projections will be available.
In another sign of concern, the OECD cut growth forecasts for the global economy from 3.3% to 3.0%. The Paris-based think-tank urged governments across the developed world to act "urgently" and "collectively" to bolster activity, and warned that global growth prospects had "practically flat-lined," as reported.
The calls for urgent action come at a time of increased doubt over whether unconventional monetary policy is effective and concern about fragility in the European banking system.
On Wednesday, minutes from the Federal Reserve's January meeting also noted increased risks facing the U.S. economy, amid a sharp fall in commodity prices and renewed worries over Chinese growth, according to the report.
The minutes of last month's ECB meeting showed that committee members considered it "premature" to conclude what action could be taken, given financial market volatility and a wide sense of uncertainty, but it reaffirmed that rates would remain "at current or lower levels for an extended period of time."
It is noted that some ECB members want more aggressive action, with at least one saying it would "be preferable to act pre-emptively, taking emerging risks into account, rather than to wait after risks had fully materialised," according to the account.