ECB Price Stability Strategy Bearing Fruit
Some experts analyse the impact of the first almost 6 months since the ECB announced the launch of its ‘quantitative easing’.
Some experts analyse the impact of the first almost 6 months since the ECB announced the launch of its ‘quantitative easing’.
Despite the political challenges emerging in Greece, the economic recovery in the eurozone has begun to strengthen driven by domestic consumption.
MADRID | June 3, 2015 | So far, monetary policy stimulus is working as planned, ECB’s president Mario Draghi insisted on Wednesday, and the bond buying program needs to reach full implementation until September 2016. The central lender rules out any earlier taper and will keep rates on hold.
LONDON | June 3, 2015 | UBS | The fact that the Eurozone’s headline inflation pick-up was related not just to headline HICP but also to core inflation will be acknowledged positively by President Draghi in today’s press conference. Yet, the ECB will be careful not to deviate from the message it has given in recent months.
MADRID | May 14, 2015 | BNP Paribas | Net issuance of sovereign bonds will exceed ECB purchases in May by c.EUR50bn. We believe this is why yields are going up. We also believe this is why they will come down again from June when ECB QE will again significantly outpace sovereign bond issuances (by c. EUR8bn in June and EUR90bn in July)
MADRID | May 7, 2015 | By Luis Arroyo | Credit lending to the private sector (households and companies) continued to fall in March, according to the Bank of Spain. So as a matter of fact there is more lending activity in the country, yet the money is going to the public sector.
The Corner | April 30, 2015 | For BNP Paribas analysts Mario Draghi will find it increasingly difficult over the next few months to execute its planned EUR45bn monthly purchases of sovereign bonds.
The Corner | April 29, 2015 | Is the eurozone’s private sector finally turning a corner? For the first time in three years, lending to households and firms rose in March (0.1% y-o-y), European Central Bank data showed on Wednesday, partly thanks to the QE iniciative.
MADRID | April 26, 2015 | By Luis Arroyo | After effusively congratulating the progress of the Spanish economy in his last press conference, Draghi said that some labor reforms are missing. Let’s connect the dots: the ECB’s president is attributing himself the merit of recovery with his expansionary monetary policy, while the demerit that this is not stronger is attributed to Madrid, which is not undertaking enough reforms.
LONDON | April 21, 2015 | Barclays | The ECB remains committed to deliver its QE target of a more than €1.1trn balance sheet expansion through asset purchases and sought to dispel fears over asset scarcity.