samedi 7 mars 2015
EU: Draghi Goes Shopping, Greece in EU Rendezvous
Posted on 03:36 by nice news
On Monday, March 9, the European Central Bank (ECB) will start buying public sector bonds in the secondary market, while continuing with purchases of asset-backed securities (ABS) and covered bonds, at a combined pace of €60 billion per month, ECB Governor Mario Draghi told the press conference in Nicosia after the ECB Governing Council policy meeting on Thursday.
"We will start purchasing euro-dominated public sector securities in the secondary market," Draghi said, adding that "we will also continue to purchase asset-backed securities and covered bonds, which we started last year."
Although some of the technical details of the program, including its size and overall framework, had already been known, Draghi told the audience that it "will be conducted until the Governing Council sees a sustained adjustment in the path of inflation which is consistent with its aim of achieving inflation rates below, but close to, 2% over the medium term," confirming that there is no duration target.
According to the ECB, the euro zone is already seeing the rewards of QE, or the PSPP (Public Sector Purchase Program) as it will be known, as financial conditions have improved and borrowing conditions for the private economy have eased. Moreover, business and consumer confidence are improving and the transmission mechanism of monetary policy is firming. This will ultimately contribute to a further improvement in the economic outlook.
Some analysts are still not taken over by exuberance of the ECB. "We rather take this renewed optimism with a grain of salt as the ECB is radiating self-confidence in the hope of successfully managing the market’s expectations," Rabobank's Research Team wrote in a note to clients on Friday.
"QE only works when people believe it works, after all. This also
"We will start purchasing euro-dominated public sector securities in the secondary market," Draghi said, adding that "we will also continue to purchase asset-backed securities and covered bonds, which we started last year."
Although some of the technical details of the program, including its size and overall framework, had already been known, Draghi told the audience that it "will be conducted until the Governing Council sees a sustained adjustment in the path of inflation which is consistent with its aim of achieving inflation rates below, but close to, 2% over the medium term," confirming that there is no duration target.
According to the ECB, the euro zone is already seeing the rewards of QE, or the PSPP (Public Sector Purchase Program) as it will be known, as financial conditions have improved and borrowing conditions for the private economy have eased. Moreover, business and consumer confidence are improving and the transmission mechanism of monetary policy is firming. This will ultimately contribute to a further improvement in the economic outlook.
Some analysts are still not taken over by exuberance of the ECB. "We rather take this renewed optimism with a grain of salt as the ECB is radiating self-confidence in the hope of successfully managing the market’s expectations," Rabobank's Research Team wrote in a note to clients on Friday.
"QE only works when people believe it works, after all. This also
EU: Draghi Goes Shopping, Greece in EU Rendezvous
Categories: EU: Draghi Goes Shopping, Greece in EU Rendezvous
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