6 Apr 2015
ECB’s QE2 in the pipeline? – BAML
FXStreet (Edinburgh) - Despite QE has just been launched, analysts at BAML believes there is the possibility that the ECB could implement QE2 once the current programme finishes.
Key Quotes
“Beyond the short-term, we would expect divergence of monetary policies to continue weighing on the Euro”.
“The ECB has announced optimistic macro projections, which we see as targets, justifying QE at least until September 2016, even if data improves further”.
“Whether EUR/USD weakens well below current levels will depend to a large extent on whether the market starts expecting QE2 by the ECB next year”.
“It is too early to make this call, but our economists believe that ECB QE 2 is more likely than not based on their inflation projections”.
Key Quotes
“Beyond the short-term, we would expect divergence of monetary policies to continue weighing on the Euro”.
“The ECB has announced optimistic macro projections, which we see as targets, justifying QE at least until September 2016, even if data improves further”.
“Whether EUR/USD weakens well below current levels will depend to a large extent on whether the market starts expecting QE2 by the ECB next year”.
“It is too early to make this call, but our economists believe that ECB QE 2 is more likely than not based on their inflation projections”.