Brian Martin, analyst at ANZ, notes that the ECB confirmed that quantitative easing will end this month, setting in motion the beginning of a very gradual “dialling back” of extreme monetary accommodation.
Key Quotes
“It is convinced that the factors driving the expansion are still in place, but it made modest downward adjustments to the 2019 inflation and growth forecasts.”
“We do not expect the decision to end asset purchases to have a meaningful influence on capital flows back into the euro area. Such a development will require expectations of a broad based tightening in policy and rising bond yields.”
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