11 Apr 2014
ECB’s QE still far from real implementation – Danske Bank
FXStreet (Barcelona) - Analyst Jens Pedersen at Danske Bank suggest the bar remains quite high for any form of QE in the euro area.
Key Quotes
“The ECB Vice-President last night hinted further at a possible QE programme, as he said that private assets will be included if such a programme were to be undertaken”.
“If QE were to work properly, in the sense that it creates an acceleration in the money supply growth and lift inflation expectations, the ECB will probably also have to make purchases in the government bond markets due to its vast size”.
“We see a good chance that the ECB eventually will be forced to do QE, however, the bar is probably still quite high before any announcements are made”.
Key Quotes
“The ECB Vice-President last night hinted further at a possible QE programme, as he said that private assets will be included if such a programme were to be undertaken”.
“If QE were to work properly, in the sense that it creates an acceleration in the money supply growth and lift inflation expectations, the ECB will probably also have to make purchases in the government bond markets due to its vast size”.
“We see a good chance that the ECB eventually will be forced to do QE, however, the bar is probably still quite high before any announcements are made”.