24 Mar 2015
ECB ahead of its purchase target - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank noted that the ECB President Draghi sounded an upbeat note on the economic outlook for the eurozone in his speech before the EU parliament...
Key Quotes:
"...arguing that the ECB’s recent policy decisions are contributing to a firming outlook as “lower interest rates in capital markets are increasingly being transmitted through the entire financial intermediation chain.” That’s a good dose of ex-post rationalization! Should any risks to financial stability emerge from the ECB’s policies, “macro-prudential policy would be best suited to address them.”, Draghi said. With regard to the QE program, Draghi noted that “At this point in time we see no signs that there will not be enough bonds for us to purchase."
"Feedback from market participants so far suggests that implementation has been very smooth and that market liquidity remains ample.”
"Indeed, for now the ECB appears to be well ahead of its monthly purchase target, having bought EUR 26.3bn of bonds since March 9, according to data released by the central bank yesterday. But having seen recent volatility in eurozone bond markets and the front-loaded issuance by governments, it remains to be seen whether the ECB can continue to buy with similar ease in the months to come."
Key Quotes:
"...arguing that the ECB’s recent policy decisions are contributing to a firming outlook as “lower interest rates in capital markets are increasingly being transmitted through the entire financial intermediation chain.” That’s a good dose of ex-post rationalization! Should any risks to financial stability emerge from the ECB’s policies, “macro-prudential policy would be best suited to address them.”, Draghi said. With regard to the QE program, Draghi noted that “At this point in time we see no signs that there will not be enough bonds for us to purchase."
"Feedback from market participants so far suggests that implementation has been very smooth and that market liquidity remains ample.”
"Indeed, for now the ECB appears to be well ahead of its monthly purchase target, having bought EUR 26.3bn of bonds since March 9, according to data released by the central bank yesterday. But having seen recent volatility in eurozone bond markets and the front-loaded issuance by governments, it remains to be seen whether the ECB can continue to buy with similar ease in the months to come."