6 Mar 2015
ECB sees downside risks diminished - Westpac
FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation explained that the ECB confirmed it would start its bond buying QE program on 9 August, buying EUR60bn per month until at least September 2016.
Key Quotes:
"The yield floor for government bond purchases will be the deposit rate, which currently stands at -0.20%."
"Draghi confirmed that all purchases will be carried out by national central banks and that central banks will exclusively buy their own domestic government and national agency debt."
"The ECB also updated its economic forecasts. Inflation was upgraded and is expected to be 1.5% in 2016 (was 1.3% previously) and 1.8% in 2017, suggesting the QE program may not extend beyond 2016. Draghi noted the economy’s downside risks had ”diminished following recent monetary policy decisions”."
Key Quotes:
"The yield floor for government bond purchases will be the deposit rate, which currently stands at -0.20%."
"Draghi confirmed that all purchases will be carried out by national central banks and that central banks will exclusively buy their own domestic government and national agency debt."
"The ECB also updated its economic forecasts. Inflation was upgraded and is expected to be 1.5% in 2016 (was 1.3% previously) and 1.8% in 2017, suggesting the QE program may not extend beyond 2016. Draghi noted the economy’s downside risks had ”diminished following recent monetary policy decisions”."