David Roche – The ECB’s new monetary policy framework
David Roche discusses the ECB’s new monetary policy framework – what does it mean for the interest rate outlook, inflation, the euro and Eurozone bonds and equities.
Network:
Tags: ECB
The monetary mutualisation of Eurozone debt (or its sovereign risk) through the ECB is becoming more likely. The fiscal monetisation of debt through the issue of Coronabonds is becoming less likely. Monetisation is feasible. The arithmetic works. If you add up all projected fiscal deficits in the Eurozone for this year, the total comes to almost exactly the fire power the ECB has approved.
Unsurprising to see overall loan demand and supply conditions little changed with weaker corporate demand offset by stronger demand on the consumer side. While banks expect corporate loan demand to pick up in the second quarter looking at underlying economic conditions this seems quite optimistic,
Eurozone February money supply & credit chart pack.
More than 12 years after the start of the global financial crisis (GFC) central banks do not feel able to…
Faltering growth and undershooting inflation expose the contradictions of the ECB’s current policy approach. Despite Draghi’s insistence, they remain well…
The ECB has a fine line to tread, since its forward guidance is out of kilter with the slowdown in…
We are going short the euro versus the Us dollar. And some investors may consider going long gold versus the…
ECB monetary policy will remain easier for longer, which means an extension of the asset purchase programme (APP) while maintaining…
