Daily Management Review

ECB follows the Fed's lead in the curtailment of the QE program


07/14/2017


The European Central Bank (ECB) seeks to maintain the open time of the asset buy-back program, and not to set a potential date for its termination. These actions are meant to maintain flexibility, if forecasts fail, Reuters writes.



World Economic Forum via flickr
World Economic Forum via flickr
Not mentioning specifically when the net bond purchases fall to zero, the ECB hopes to emphasize that there are no specific courses for the incentive program and that any changes remain dependent on economic indicators, while mainly relying on wage data.

The ECB was supported by curtailment of the US Federal Reserve's purchase program in 2014, noting the reluctance of the US central bank to publicly target the end date of the program.

"The Fed made the most successful exit, which is an example for us," said the agency's source, who asked not to be named. "It's important not to reload and save the date flexibly."

ECB President Mario Draghi created a shock wave for the markets earlier this month when he announced potential changes in the quantitative easing program for the regulator. This made investors carefully study any possible clues about the next steps of the central bank, which are expected to be taken at the meeting on September 7.

Half of the analysts polled by Reuters now expect the ECB to announce in September that it will gradually turn off asset buying. While 25% of analysts believe in one-time reduction of the program, the remaining 25% do not expect any changes.

Until now, the ECB has stated that the current rate of purchases has been calculated until December 2017. It may continue if it is necessary, but then the final stage will come.

source: reuters.com






Science & Technology

Motorola’s New Patent Will Self-Heal A Cracked Smartphone Screen

Auto Parts Out Of Wood Is What Japan Is Looking At Making

Security Firm Claims Hotel Guests Across Europe Were Targeted By Russia-Linked Hackers

World’s First Genetically-Modified Animal To Enter Food Supply Is Salmon

In The Future, UBS Analyst Says, Multiple Planes Could Be Operated From The Ground By Today’s Pilots

Will Germany save diesel?

How China became a pioneer of the solar industry

CNBC: Intel leaves the wearable gadgets market

Oculus Rift falls in price…again

Ukraine Police Official Says Likely Cover For Malware Installation Was Global Cyber Attack: Reuters

World Politics

World & Politics

Russia surpasses Saudi Arabia in oil production

China counts losses from sanctions against the DPRK

OCP Group Vs South African Courts: A storm is brewing on international maritime trade

Britain to conduct a study on labor migration after Brexit

CNN: Rex Tillerson may leave the post of US Secretary of State

Its South China Sea Territory Being Protected By Indonesia From 'Foreign' Threats

A Swarm-Like Attack From North Korea Could ‘Overwhelm’ South Korea's THAAD Missile Shield

Powerty in Italy tripled in 10 years