Monday , November 23 2020

The European Central Bank is behind the "Palas" slots: Some of those who do the policy hope to strengthen the economic risk – Wall Street News



At the meeting on Thursday, December 13, the European Central Bank confirmed that it will end the QE of 2.5 trillion euros at the end of this year. After the meeting, the statement was amended a little. But consistent decisions may have hiding some "battles".

Reuters gave an interim quote saying that European Central Bank policy makers on Thursday support the withdrawal of withdrawal motivation, but some hope to adopt a more careful tone on the economic look of the euro zone, such as its make it clear that the risks associated with the economic prospects are "vulnerable". And here is the wording that the European Central Bank has suggested in the past to prepare for the consumption of other money.

Opponents of the opinion that such adjustments will make the market expect the European Central Bank to adapt its policy. Others believe that even if the ECB is not ready to amend the wording, it must recognize that growth is slowing down. If the message of the statement has not changed, it will raise questions about the credibility of the ECB.

Ultimately, the ECB's post-meeting statement did not just make a fine fine, reflecting an increase in economic concerns, but thought that the risks were still balanced.

Earlier on Wall Street, the article stated that the statement reinforces the guidance that looks forward to reinvesting, saying that, if necessary, it will reinvest in the bonds mature and change the "re-investing continuously after QE" previously stated to "the first time". Continue reinvesting after raising interest rates. "The analysis believes that the ECB meeting at this meeting indicated that there was only very little adjustment to the columns.

However, Wall Street has noticed that ECB President Mario Draghi has mentioned the disadvantage risks at a press conference after the meeting. He said:

"The risks associated with the Eurozone growth prospects are still being assessed as a general balance. However, due to geopolitical factors, threats to protection, markets that seem fragile and Continuous volatility in financial markets, the risk balance is at the minimum. "

Draghi said that the recent data and survey results were weaker than expected, partly due to the weaker external demand and factors in the country and in particular to the sector. He added that the local economy will continue to support economic expansion. Although the ECB management committee is more careful, there is still confidence in the eurozone.

Draghi noted that she had an impact on the loss of an external weakness, the European Central Bank had cut its GDP growth and inflation expectations this year and next. At the same time, he said that the European Central Bank had the tools to solve any problems of slowdown and future disadvantage problems. The meeting did not discuss the rate of hike rate and did not cover the long term refinancing (LTRO) work.

Ken Wattret, an economist at IHS Markit, said that if the European Central Bank objectively objected to economic changes since June this year, it would extend the purchase of QE assets. Invisible inflation is not really in conflict. The real concern is that the lack of bullets in the euro zone can become a problem in the future.

* This article from Wall Street (WeChat ID: wallstreetcn). Open Wall Street to see VIP members and immediately to access the systematic financial market services.*


Source link