The markets of the world are waiting to see what will be the announcement made Thursday the executive committee of the European Central Bank, looking to inject liquidity into the economy of the block and stimulate the purchase of 50,000 million monthly bonuses in sovereign bonds.
This is a QE program that would begin to run from next March and could be extended for one year, ie amount in arrears with an injection of liquidity by 600,000 million.
The ECB president, Mario Draghi, talk to journalists at 13:30 GMT (8:30 am EDT Colombia) to explain the scope of this plan has no other to give oxygen to the European economy, mired in a stalemate with negative inflation, ie deflation would be fatal for the stability of the block, being a phenomenon which takes about 15 years to rebuild.
Andres Pardo , head of economic research Corficolombiana indicated that markets expect a moderate movement today after the announcement. “Surely the euro remain weak, the rates of government bonds globally will remain low, stock markets in Europe react to the upside,” but it all depends on the size of the ad. Now if the ECB announces a more aggressive plan, could adversely affect the value of the euro and generate an adverse effect on European equity market.
Media and The Wall Street Journal and Bloomberg predict what which will be the stimulus that can be compared to the Federal Reserve in the US, made in 2009 to encourage the economy of that country after the mortgage crisis in 2008. Bloomberg believes that purchases would last until the end of 2016.
One of the positive effects that the injection of ECB is the direct and indirect investment, “when they do these massive purchases a signal is sent to the world to stimulate the economy, attracting investment. Is expected to reach investment portfolio and products to Europe, said meanwhile, Orlando Santiago , manager of Phoenix value.
The global market has already given for granted the intervention of the European monetary entity and therefore an abrupt change is not expected behavior in the day. They even kept interest rates unchanged at 0.25 percent for good weather, Santiago added.
The main ghost plaguing Europe is deflation, which eats growth despite a negative inflation although this block is of congratulations with current oil prices, which yesterday closed at $ 49.03 a barrel Brent, the task is to revive the economy.
No comments:
Post a Comment