Home » ECB: growth on the rise, inflation contained. No discussion expected on tapering

ECB: growth on the rise, inflation contained. No discussion expected on tapering

by admin
  1. Home ››
  2. News >>
  3. World News ››



FACEBOOK
TWITTER
LINKEDIN

“We believe Thursday’s ECB meeting will provide substantial updates on growth projections, while changes to inflation forecasts are likely to be mitigated. Tapering will not be discussed at this meeting: if the commitment to buy at a “significantly higher” pace were attenuated, it would be an aggressive change, which we do not expect yet “, comments Alberto Gallo, manager of the Algebris Global Credit fund. However, third-quarter purchases could be reduced amid weaker seasonal issuance – without more aggressive, ‘hawkish’ implications.

“Considering that Europe is reaching the level of vaccination doses distributed in the United States and the economy continues to stabilize, we believe that the ECB will discuss the reduction of Pepp in the coming months and eventually could do it in parallel with the Fed – adds Gallo. -. However, the forward guidance will highlight that monetary policy will remain accommodative for a long time, as the ECB cannot afford peripheral government yields to grow substantially in a still high sovereign debt situation ”.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy