14 May 2014
Bundesbank would favour QE in the euro area – Danske Bank
FXStreet (Edinburgh) - According to Jens Pedersen, Analyst at Danske Bank, the Bundesbank would give green light to the implementation of further easing measures in the euro bloc.
Key Quotes
“The Bundesbank is rumoured to be open to significant stimulus at June’s ECB meeting, including a negative deposit rate, extension of the fixed-rate full allotment to mid-2016, new long-term loans to banks at a fixed rate and an ABS-purchase programme, if the central bank’s 2016 inflation forecast is lowered”.
“The comments triggered an instant market reaction sending EUR/USD close to 1.37. Later it was said that Bundesbank’s support would not be automatic and that nothing was decided”.
Key Quotes
“The Bundesbank is rumoured to be open to significant stimulus at June’s ECB meeting, including a negative deposit rate, extension of the fixed-rate full allotment to mid-2016, new long-term loans to banks at a fixed rate and an ABS-purchase programme, if the central bank’s 2016 inflation forecast is lowered”.
“The comments triggered an instant market reaction sending EUR/USD close to 1.37. Later it was said that Bundesbank’s support would not be automatic and that nothing was decided”.