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

Chinese Study Claims Heart Diseases Can Be Reduced By Having An Egg A Day

Asteroid mining: Reality or fiction?

3D Printing Used For Life Saving Kidney Transplant In Two Year Old At U.K. NHS

California to require solar panels for new homes by 2020

Blockchain Enables De Beers To Track Diamond From The Miner To The Retailer

Microsoft releases Windows 10’s April 2018 Update

DNA Sequencing Project Proposed For All Complex Life Forms On Earth By An Int’l Team

Facebook may start production of its own microprocessors

Long-Term Alcohol Monitoring Could Be Possible With A New Injectable Chip Developed By U.S. Researchers

Sweden Now Has The First Electrified Road In The World

World Politics

World & Politics

The British government is trying to unblock money to pay off the national debt

Ministerial Visit From India To North Korea Aimed At Strengthening Ties

What countries are the biggest losers of Trump’s Iran decision?

World's Oldest Elected Prime Minister Is Malaysia’s 92 Year Old Mahathir Mohamad

Why Is U.S. Pulling Out Of The Iran Deal A Big Deal For The World

Merkel, Macron, May call on Iran to adhere to the nuclear deal

Arab Region Driven In ‘Wrong Direction’ In Last 10 Years, Say Arab Your: Survey

German doctors demand a tax on sugar