9 Mar 2015
ECB confident about a rebound in inflation and growth – BNPP
FXStreet (Barcelona) - With ECB providing further details of its QE program, the BNP Paribas Team assesses the purchase program and notes that the growth and inflation scenario projected by ECB suggests that the central bank is confident for a rebound from the current low inflation and growth.
Key Quotes
“The ECB provides more details regarding the modalities of its QE program. The program will start next Monday on 9 March. The ECB and the national central banks will then buy EUR 60 bn of private and public debt securities each month.”
“Regarding the latest, for each central bank the amount of the purchase will be determined in respect of its repartition key in the ECB capital.”
“The central bank will also buy debt securities with negative yields attached, with a limit for negative yields above or equal to -0.20% (i.e. the same rate as the one for banks’ currently liquidity above required reserves held in the ECB current accounts).”
“To sum up, the growth and inflation scenario drawn by the ECB suggests that the ECB is confident that the measures adopted so far will be sufficient to pull the Eurozone out from its current depressed equilibrium of low inflation and low growth. The first hard data released at the beginning of 2015 seem to confirm this scenario.”
Key Quotes
“The ECB provides more details regarding the modalities of its QE program. The program will start next Monday on 9 March. The ECB and the national central banks will then buy EUR 60 bn of private and public debt securities each month.”
“Regarding the latest, for each central bank the amount of the purchase will be determined in respect of its repartition key in the ECB capital.”
“The central bank will also buy debt securities with negative yields attached, with a limit for negative yields above or equal to -0.20% (i.e. the same rate as the one for banks’ currently liquidity above required reserves held in the ECB current accounts).”
“To sum up, the growth and inflation scenario drawn by the ECB suggests that the ECB is confident that the measures adopted so far will be sufficient to pull the Eurozone out from its current depressed equilibrium of low inflation and low growth. The first hard data released at the beginning of 2015 seem to confirm this scenario.”