27 Feb 2015
How open ended is the QE programme really? – Danske
FXStreet (Barcelona) - Pernille Bomholdt Nielsen, Senior Analyst at Danske Bank, notes that with ECB meeting next week focus will be on further details regarding the QE program, and further expects the bond purchases to be carried out at least until end-September 2016.
Key Quotes
“Questions have been raised about whether the QE programme really is open ended as purchases are ‘intended’ to be carried out only until September 2016.”
“Related to this, Draghi is likely to be asked to clarify the difference between the wording in the introductory statement and the QE press release. This follows as the introductory statement said the purchases are ‘intended to be carried out until end-September 2016’, whereas the press release had a stronger wording stating that purchases were ‘intended to be carried out until at least September 2016’.”
“We expect the purchases to be carried out at least until end-September 2016, although we believe the recovery will gain momentum and headline inflation will print above 1% as early as the beginning of 2016.”
Key Quotes
“Questions have been raised about whether the QE programme really is open ended as purchases are ‘intended’ to be carried out only until September 2016.”
“Related to this, Draghi is likely to be asked to clarify the difference between the wording in the introductory statement and the QE press release. This follows as the introductory statement said the purchases are ‘intended to be carried out until end-September 2016’, whereas the press release had a stronger wording stating that purchases were ‘intended to be carried out until at least September 2016’.”
“We expect the purchases to be carried out at least until end-September 2016, although we believe the recovery will gain momentum and headline inflation will print above 1% as early as the beginning of 2016.”