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

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Posted By: The Corner 4th December 2014

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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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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