Market news
12.09.2019, 15:04

ECB: QE open-ended but too small to change economic outlook – ABN AMRO

Nick Kounis, the head of financial markets research at ABN AMRO, suggests that the ECB announcements were broadly in line with expectations in terms of rate cuts (a 10bp reduction in the deposit rate and a signal of more to come) and mitigating measures for banks (more generous TLTRO conditions and a tiered deposit rate system).

  • “The restart of net asset purchases was a mixed bag, as the size was relatively modest (EUR 20bn per month), but the programme is open-ended for the first time since the ECB launched the APP.  The ECB said the programme would last as ‘long as necessary’.
  • Despite the open-ended nature of the programme, the size of the QE programme is very small and, as such, the macroeconomic impact of these measures will be relatively modest. As such we doubt whether this package of measures will be sufficient to raise inflation significantly over the next 2-3 years. Given this, and the modest pace of net asset purchases, QE will likely last for the foreseeable future, and a step up in the pace looks likely at some point.”

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location