MILAN (Reuters) – will be expanded in time but not in the amount raised monthly program ‘asset purchase’ by the European Central Bank. And ‘the last link in the long chain of measures, real shock therapy Frankfurt targeted to restart inflation is not there. Together with the measurement ‘unconventional’ on quantitative easing – extended at least up to March 2017 compared to the previous minimum horizon of September 2016 – the central institution shall be a touch-up rate, cutting to new record low of -0.3 % reference marginal deposit. The background to the cocktail recipes ECB the new revision of the quarterly estimates of the staff: confirmed in terms of inflation expectations of a modest 0.1% for this year, but filed down by a tenth respectively 1% and 1.6% of that in 2016 and 2017. More and more remote then the official target, below but close to 2%. To return briefly to the news program ‘q’, modeled on the Federal Reserve and the Bank of England Frankfurt is committed to reinvest. Whether cutting the deposit rate is the strengthening of the ‘quantitative easing’, however, it was at least weeks widely in prices, hence the real cold shower for a very unbalanced market forward. Affected by heavy realize the bags, while the euro jumped to $ 1.089 and yields shoot up, bringing the ten-year Italian over 1.6% and the spread BTP / Bund in the sprint with a bit more than 110 points basis. Mario Draghi addresses the press while painting the picture of a euro area where economic growth and inflation still struggling to recover. The chairman also the ritual that Frankfurt is ready to adopt additional measures if the situation demands it. It is only to be seen what in concrete ammunition remain available to the central bank. “It seems that Super Mario is obviously disappointing markets that had expected much more” summarizes Stephane Ekolo, strategist responsible for the euro zone to Market Securities. More …
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