There was a consensus in the market that the ECB will announce an extension of its current asset-purchase programme and so president Mario Draghi did it by expanding QE more than expected to December 2017. He also committed to do it even longer if needed.”The presence of the ECB on markets will be there for a long time,” he explained.
ECB’s bond purchase program
WASHINGTON | By Pablo Pardo | Guess which country pioneered Quantitative Easing in Europe… Exactly: Germany!
MADRID | The Corner | As all market eyes are set on Sunday’s stress tests results (which will be released 12 pm CET) and the FOMC meeting next Wednesday, the last PMI data are offering some hope, mostly in Germany. The rumors about the ECB having purchased at least 800 million euros ($1 billion) of covered bonds in the first four days of program (as opposed to €1.5bn in the first month of the last covered bond program in November 2011) fueled optimism.
MADRID | By Julia Pastor | The Bundesbank must be really worried about euro zone’s economy evolution. The German central bank’s chairman Jens Weidmann, paradigm of the country’s economic orthodoxy, opened the door to an ECB’s eventual bond purchase program for the first time in order to fight against common currency’s appreciation and the ghost of deflation. Furthermore, the German economy, strongly linked to Ukrainian interests, could suffer a downturn in the 2Q14, according to Bundesbank’s estimations. Meanwhile, the ECB could be studying some operational and legal points to start the stimulus program.