European Central Bank weighs best type of economic stimulus

FRANKFURT, Germany (AP) - The European Central Bank is weighing a package of stimulus measures including an interest rate cut and new bond purchases to counter worries that growth is slowing more than expected.

The written account of the July 25 meeting released Thursday cites discussion that a package "such as the combination of rate cuts and asset purchases" would be "more effective" than any one measure introduced piecemeal. Many analysts expect the bank to add stimulus at its Sept. 12 meeting.

The ECB said in its July 25 policy statement that it was "determined to act" to raise inflation and was ready to use "all its instruments" if things don't improve. The eurozone grew only 0.2% in the second quarter while largest member Germany shrank and may already be in a recession.