Eurozone faces an interest rates scenario highly dependent on ECB’s monetary policy

Experts at Afi talk about the different scenarios of the interest rates that will rule the euro area regarding the characteristics of the ECB’s monetary policy:

There is a QE in six months. The inflation forecasts increase. The spreads core-periphery slightly reduces.

There is not a QE in six months. There will be greater fiscal laxity, reforms, weak Euro and cheap oil, which are enough to underpin growth. Slight widening of spreads.

There is no a QE and the inflation and growth forecasts become entrenched. Strong spreads expansion. Non-sustainable scenario on the medium term. Maybe a belated QE?

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