Time will tell whether the European Central Bank’s (ECB) €1.1tn quantitative easing (QE) package will have the desired impact on the real economy. Beating deflation is the paramount objective – how many times does the ECB have to reiterate its explicit mandate of maintaining price stability
A Syriza election victory would obviously increase Greek credit risk – i.e. the higher probability of a country default – and raise concerns of a Greek exit from EMU. On balance, however, we believe that the market implications should be relatively contained.
President of the European Central Bank (ECB), Mario Draghi, said monetary policy will remain loose until inflation, currently mostly below 0.5 per cent, rises to a reasonable 2 per cent.