ECB looking to Q1 2015 before deciding on QE says Constancio via ForexLive

  • Can gauge in Q1 if pace of balance sheet expansion is on track to return to early 2012 size
  • If not we will have to consider buying other assets including sov bonds in secondary market
  • Sov QE would be a pure monetary policy decision
  • Inflation threatens to continue on the low side while low growth environment creates risks for fabric of euro area
  • Buying sov bonds would influence inflation expectations and exchange rate
  • Current stimulus is expected to to achieve ECB asset goal
  • It is not the job of ECB to pressure governments

EUR/USD chalks up another ECB man priming QE. It comes with the same old ‘wait for the data/current stimulus results' but there's no doubt they're ready to pull the trigger. It heightens the prospect of getting the full details at next week's ECB meeting

posted via ForexLive

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: FuturesForexGlobalEconomics
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!