In response, the Monetary Policy Committee of the Bank has increased interest rates by a cumulative 450 basis points since June 2006. Food and petrol prices are the main contributors to inflation, but in recent months, more generalised price pressures have emerged as well.
The financial markets in Europe are very different to those in the United States: a QE for the euro area would thus be very unlike the US version of QE. Lastly, purchases of assets should be carried out in line with the Treaty, which prohibits the ECB from directly financing governments. Discussions are underway on all of these aspects.