The ECB is expected to announce purchases of sovereign debt in Q1 2015
The ECB is expected to announce purchases of sovereign debt in Q1 2015
Global & Regional Focus Notes
16 Δεκεμβρίου 2014
• Although resistance to sovereign debt purchases by the ECB is high, monetary action seems more palatable to opponents than political action, such as some form of fiscal risk sharing.
• In our view, both the size and the synthesis of the ECB’s QE matters. The size of QE matters mainly in terms of ring-fencing the ECB’s credibility as price stability defender and in terms of currency depreciation.
• The ECB should also broaden its purchases of private assets in order to target more effectively lending to SMEs, which are highly dependent on bank lending and continue facing fragmented financial conditions.
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