The ECB is running out of road with its efforts to boost the moribund eurozone economy and may have to consider giving money directly to households, leading economist Alan McQuaid has said.

The dollar climbed to a seven-month high against the euro as the rate of US inflation increased in October, fuelling speculation the Federal Reserve will raise interest rates from near zero as soon as next month.

The European Central Bank cut its inflation and growth forecasts for the eurozone yesterday as its president said things could get worse.

The eurozone’s inflation rate held steady in August, highlighting the challenge facing the ECB as it seeks to revive consumer-price growth.

The risk has increased that the European Central Bank won’t get inflation back up to where it wants, the bank’s chief economist said yesterday, pledging to beef up its anti-deflation asset-buying programme if necessary.

European Central Bank policymakers agreed at their March meeting to “remain firm” in implementing their large-scale asset-purchase programme, even though the economic outlook is improving, records published yesterday showed.

The ECB’s chief economist warned eurozone central bankers of the perils of delaying quantitative easing, according to records of a January meeting that shed light on how policymakers ‘broadly’ agreed to launch the scheme.

Mario Draghi this week faces one of the dominant challenges for the euro-area economy in 2015, writes Catherine Bosley

A gauge of euro-area services and manufacturing signaled economic growth slowed in the final quarter of 2014, supporting calls for more stimulus by the European Central Bank.

Inflation in the eurozone edged up slightly in October, reinforcing the view that the ECB will hold fire on any additional policy action at its meeting next week.

The European Central Bank is hoping a new round of long-term loans will be used by banks to drive down borrowing costs — a substitute for an asset-purchase scheme of its own which would avert a potentially damaging internal split.

The board of directors of the troubled Spanish bank, Bankia, says it has agreed to ask for €19bn in state funds.

London’s leading index was broadly flat today as fears over Europe’s banks were offset by a strong consumer confidence survey on the other side of the Atlantic.

The European Central Bank (ECB) has made €530bn in low-interest loans to banks in the second round of a massive credit infusion that has been credited with easing the eurozone debt crisis.

EUROPEAN Central Bank President Mario Draghi agreed to put Belgium’s Peter Praet in charge of the bank’s economics division, ignoring calls from Germany that one of its nationals should keep the job.

IRELAND and the other eurozone countries could immediately lose half their wealth were the euro area to break apart, while Germany would lose a million jobs if the currency area were to shrink to a few core members.

FINANCE ministers are expected to name the new appointee for the vacant seat at the European Central Bank today when they will also discuss nominations for the International Monetary Fund position.