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23 Jan 2015
ECB’s bazooka will take time to make an impact – Investec
FXStreet (Barcelona) - The Investec Team explains that the EUR 60bn per month purchase programme by ECB will boost the euro economy but will take time to make an impact.
Key Quotes
“The most anticipated event in markets of the 2015 didn’t disappoint yesterday as the European Central Bank announced their quantitative easing measures. Mario Draghi, the head of the ECB, announced “the combined monthly purchases of public and private sector securities will amount to €60bn”, which was towards the top end of expectations.”
“The finer components of the package are asset purchases, including bonds issues by national governments which are purely designed to boost the Eurozone economy and attempt to ward off the threat of deflation. Many are referring to the action as the ECB’s Bazooka but if this is the best analogy we would add that Mr Draghi is aiming it straight up because such measures will take some time to land and make an impact.”
“In the mean-time the euro has weakened further because of the extent of the measures, whilst equities have soared as investors take advantage of the extra liquidity in markets. “
Key Quotes
“The most anticipated event in markets of the 2015 didn’t disappoint yesterday as the European Central Bank announced their quantitative easing measures. Mario Draghi, the head of the ECB, announced “the combined monthly purchases of public and private sector securities will amount to €60bn”, which was towards the top end of expectations.”
“The finer components of the package are asset purchases, including bonds issues by national governments which are purely designed to boost the Eurozone economy and attempt to ward off the threat of deflation. Many are referring to the action as the ECB’s Bazooka but if this is the best analogy we would add that Mr Draghi is aiming it straight up because such measures will take some time to land and make an impact.”
“In the mean-time the euro has weakened further because of the extent of the measures, whilst equities have soared as investors take advantage of the extra liquidity in markets. “