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

Scientists Discover Largest Ever Under Water Volcanic Eruption Near New Zealand

Bitcoin craze increased load on the power grid to the maximum

PC And Server Performance Slows Down Due To Security Patches For Chip Flaws, Says Microsoft

Cybersecurity Firm Claims Cryptocurrency Monero Might Be Getting Funneled To North Korea University

The Way We Travel Will Be Changed by The Colorless, Odorless Gas - Hydrogen

EU's Big Change In Data Protection Rules Makes Businesses To Get Ready For It

Artificial Intelligence Helps NASA Find An 8th Planet In Orbit Of A Distant Star

Australian Research Success Could Mean Shatterproof Cell Phones Could Soon Be A Realityv

Top ten hi-tech events of the year

Tesla Considering Designing And Developing AI Chips On Its Own To Support Its Auto-Pilot Project

World Politics

World & Politics

Take and go away: new approach to refugees in Europe

Both The Korean Countries Will Come Together In Olympic Talks

Parties of Germany agreed on the migrants problem

Munich Re: Natural disasters caused record damage in 2017

High-Level Talks To Be Held Between North And South Korea In Over Two Years

Sexually Abusing Children Interests An Estimated 20,000 British Men, Shows Police Monitoring Of Chat Sites

2018 Could See An Increase In Terror Attacks Where Both ISIS As Al-Qaeda Continue To Present Threats

What will happen to European populism in 2018?