Draghi, Open to More Long-Term Loans

“We are ready to use any instrument, including another LTRO [long-term refinancing operation] if needed, to maintain the short-term money markets on the level that is warranted by our assessment of inflation in the medium term,” Mr. Draghi said Monday in testimony to European Parliament.

His comments have been like fresh air to Europe’s banks, which face another stress test in the coming months. Bottom line is, recovery seems to be picking up, not only in Germany: business activity in the region picked up to a 27-month high in September, the PMI showed.

Having said that, the eurozone’s economy is still fragile, as Chris Williamson, chief economist at Markit, which compiled the survey, suggested. It grew by 0.2pc in the three months to September, slower than the 0.3pc rebound from recession in the second quarter.

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