Loose ECB policy drives recovery, Draghi claims

The eurozone economy is on track for a recovery this year driven by the ECB’s loose monetary policy and demand from abroad, according to the bank’s president Mario Draghi.

The ECB cut interest rates to a new record low last month and said it would act again if necessary. Its hand may — in part — be stayed this month and going forward by a rebound in inflation, which rose back to 1.4% in May from 1.2% in April.

That is still way below the bank’s roughly 2% target and unemployment in the eurozone reached a fresh high in April of 12.2%, fuelling further calls for policymakers to do more to help the economy.