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3 Sep 2015
ECB’s QE2 on sight? – BAML
FXStreet (Edinburgh) - Analyst Athanasios Vamvakidis at BAML slipped the possibility that the ECB could implement further easing after September 2016.
Key Quotes
“We have been arguing that normalization of monetary policies will be driving markets for years to come. We expect the Fed to lead the way”.
“Other G10 central banks are likely to continue moving to the opposite direction for a while, and then start tightening after the Fed’s tightening cycle has advanced”.
“Even if the Fed delays hiking rates, it will be the first central bank to do so, in our view”.
“We believe that the ECB, at the other extreme, will have to ease policies further.
“We expect the ECB to miss its inflation target in the months ahead and start talking about QE2, in the form of extending QE after September next year”.
“The timing of the Fed rate hike and the ECB seriously considering QE2 will determine the EUR/USD path, but the final outcome is a weaker EUR/USD, in our view”.
Key Quotes
“We have been arguing that normalization of monetary policies will be driving markets for years to come. We expect the Fed to lead the way”.
“Other G10 central banks are likely to continue moving to the opposite direction for a while, and then start tightening after the Fed’s tightening cycle has advanced”.
“Even if the Fed delays hiking rates, it will be the first central bank to do so, in our view”.
“We believe that the ECB, at the other extreme, will have to ease policies further.
“We expect the ECB to miss its inflation target in the months ahead and start talking about QE2, in the form of extending QE after September next year”.
“The timing of the Fed rate hike and the ECB seriously considering QE2 will determine the EUR/USD path, but the final outcome is a weaker EUR/USD, in our view”.