ECB’s monetary policy

ECB

Euro area: Don’t fight the ECB

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. 


The effects of QE on peripheral spreads according to Barclays

Barclays: EGB trading in euro area requires caution

The Corner | April 14, 2015 | On Wednesday’s press conference, Mario Draghi is likely to indicate that ECB QE has got off to a good start operationally and price action terms in the market. Barclays analysts think cautious near-term trading is required in EGB spreads, given poor liquidity and lingering Greek worries.

 


Ice Age the movie

Negative rates: Ice age for savers

Asoka Wöhrmann (Deutsche AWM) | Negative interest rates are new economic territory. However, as yet, there is no sign of a major cash exodus to avoid sub-zero yields. 


ECB's QE country breakdown

Memento: How QE will work

The Corner | March 5, 2015 | Whatever it takes, don’t miss the mechanics of the European Central Bank’s next purchase programme starting on Monday. 


TLTRO 18.09.2014 1

Next TLTRO may reach €160 billion

MADRID | The Corner | All markets eyes are set on the ECB’s second offer of cheap four-year loans (TLTRO), which will take place next Thursday and are aimed to revive the eurozone’s battered economy and try to boost lending to SMEs. As a matter of fact, this second round will be important as any decision about launching a QE program will be influenced by how the banks respond to Thursday’s liquidity open bar.  



ECB

ECB preview: Not yet

Guest Post by  Thomas Harjes and Fabio Fois (Barclays) | Despite the softer November inflation print and some likely downward revisions in the ECB’s inflation and growth outlook next week, we do not expect the ECB to announce further policy easing when the Governing Council meets on Thursday, 4 December. We believe the ECB is going to wait at least another month. 


mercados expectacion1TC

Markets take ECB’s QE for granted

MADRID | The Corner | Inflation in the eurozone is not picking up. Expectations aren’t either. And the ECB’s balance sheet expansion is almost inexistent. PMI indicators (which the central bank is closely watching) are trending downwards. In this context, Barclays analysts comment, it is not strange that markets are expecting more QE from the Frankfurt. But when? Probably not this week.

 


stress test recursoTC

Markets may thrive in bad EZ inflation data

MADRID | The Corner | Trading trends in the Euro today are expected to be determined by the Euro-zone’s crucial CPI data. As happened yesterday with Spanish and German data, consumer prices are expected to do down in November, due to an energy prices drop. Will the European Central Bank feel any pressure to act? Then bad news could turn a blessing for financial markets.


inflation in the eurozone

ECB: two quotes, one graph

MADRID | The Corner | Mario Draghi: “Some form of cross-country risk-sharing is essential to help reduce adjustment costs for those countries and prevent recessions from leaving deep and permanent scars.”/ Jens Weidmann:Fiscal policy should support the central bank with solid state finances, so that monetary policy can concentrate on its actual mandate, and sustainably secure the value of money.”