No Euro QE Now – Draghi Drags EUR/USD Down – ECB Wrap Up

Mario Draghi made quite a few statements in the press conference, but he certainly made it clear that he opposes big bond buys.

Here is a wrap up of the hectic presser, covered in full in the live blog, that left the euro weaker.

• ECB introduced new liquidity programs for banks, for up to three years – very long.
• Credit rating needed for collateral with the ECB has been lowered.
• Reserve ratio has been lowered.

• Forecasts have been lowered to include a contraction of 0.4% in 2012. Draghi sees growth late in 2012.
• Rate cut was not unanimous
• Regarding the liquidity provision, Draghi slipped “We can see if we can keep the banking system liquid” – this doesn’t sound good.