"We still think therefore that the ECB will have no choice but to extend QE in one of the upcoming meetings in 2016. "Mr Draghi keeps reminding us that we need to exercise some patience in waiting for better economic activity to translate into stronger inflation, but the fact that core and services inflation is not improving with the economic recovery heightens our concern that inflation expectations are becoming dislodged. ECB president Mario Draghi batted away questions about such an extension of QE at the ECB's meeting last week. That, HSBC argues, will force the European Central Bank into more policy action, extending quantitative easing beyond its current horizon of March 2017. The fall in industrial goods suggests that the euro depreciation has failed to generate any meaningful import inflation, at least so far." "As we expected, some of the food price surprise in July is proving to be temporary, and we see more moderation in the coming months, even if the hot summer might have caused some disruptions in supply. Account icon An icon in the shape of a person's head and shoulders.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |