Questioned on that tweet, Mr. Draghi said, “We don’t target exchange rates. Period.”
Following the ECB’s policy decision, the Danish central bank lowered its deposit rate to minus 0.75%, taking it back to a historic low as it seeks to defend the currency peg.
The ECB’s announcement of a new stimulus package is a remarkable turn of events, just nine months after it signaled it was done with ever-looser policy. Now inflation is running at barely half the goal, and the manufacturing sector is in a contraction that risks spreading to the rest of the economy.
Hours before the decision, industrial-production figures showed the third quarter off to a weak start with euro-zone output dropping 0.4% in July, more than expected. The decline was led by Germany, which is on the verge of a recession as a global slowdown in trade caused by the U.S.-China standoff and the uncertainties surrounding Brexit hurts its exporters.
The approval of such broad measures is a win for Mr. Draghi in his penultimate meeting. Governors from core economies including Germany and the Netherlands pushed back against the resumption of quantitative easing, saying it should be a last resort in case the outlook worsens.
He acknowledged the “diversity of views” on asset purchases but said that “in the end the consensus was so broad there was no need to take a vote.” He also said there was “no appetite” to raise the self-imposed limits on how much debt the ECB can buy, a key sticking point among critics who see QE as blurring the line between monetary and fiscal policy.
Such doubts over the remaining firepower of central banks have put the spotlight on fiscal stimulus. Mr. Draghi and his successor, Christine Lagarde, have both repeatedly called on governments to do more to bolster the economy, and the president suggested that the topic was rare point of harmony Thursday.
“One thing was unanimous,” he said. “Namely that fiscal policy should become the main instrument.”