Draghi Seen Putting Words Before Action on ECB Policy

Mario Draghi is likely to rely on the power of his voice rather than new policies to steer Europe’s banks through the early stages of an economic recovery.

The ECB president will hold off from pumping more cash into the currency bloc’s financial system as long as the threat of action keeps market interest rates under control, according to economists from Berenberg Bank to Nomura International Plc. While Draghi has put investors on notice that a long-term refinancing operation is possible, other policy makers have played down the likelihood of that for now.