Investing.com.- The Governing Council of the European Central Bank (ECB) meets again tomorrow to adopt decisions that the market has already taken for him: the deposit facility rates will be even more negative and increase the stimulus package with a higher monthly allocation for the purchase of assets. If this does not happen, the reaction of investors may be that marked a before and after.
At its last meeting, back in January, the president of the highest monetary authority eurozone Mario Draghi pledged to the media to review the current stimulus program, given the increased economic uncertainty and poor prospects of inflation. Since then, public statements from ECB members have gone all on the same line.
Six weeks after those words and with by, the general feeling is that the decision is taken and that only the draft is already known to have the new measures; basically, to what extent will implement the duration and amount of the stimulus program and how much it will penalize the ECB to community financial institutions to deposit money into their coffers.
Tomorrow 1345, when Spain , doubts begin to fade with the publication of and. The main course will come less than an hour later, at 14.30 hours, with.
The forecasts about what might happen are different, but in general, there are three high expectations that analysts considered the most plausible:
1 .- the first, and that would be the early riser, is a reduction in ten basis points of the types of deposit facility , to -0.40% . The most daring even speak of a negative rate of 0.50%.
In June 2014, the central bank began charging a shy 0.10% to financial institutions that want to keep their wealth in banks headquartered bank.
the decision already represented a historic milestone in the European community and only a month later, the ECB decided to tighten this amount, up to 0.20%, toll banks were paying until last December, when the negative rate rose to -0.30%.
2 .- the second measure could be on the table of the Governing Council and certainly is in the minds of all market players is a new expansion of the period of implementation of the program of quantitative easing (QE) by another six months, until September 2017 .
it was this mean, to extend for six months the term of the bond purchases, which announced itself Mario Draghi at the crucial meeting of December last year and so little liked about investors eager to stimuli.
Since then, economic conditions and investor sentiment worsened and the lack of a convincing reaction prices seem to make it clear that, if in December this measure outgrew it in tomorrow’s meeting, and promised more stimulus after the adoption of this measure and no more could be totally inadequate, causing a strong reaction in the markets.
3 .- the third measure, and perhaps the most desired, is a extension of the monthly targets of the program of asset purchases, from 60,000 million current euros to 70,000 million or even higher amounts .
Today marks one year since the launch of the European QE. Since then, according to the institution, the central bank has spent over 600,000 million euros in the purchase of public debt of the states of the euro zone.
In any case, neither it is possible that Mario Draghi uncheck with additional measures to revive the economy which have not been implemented to date, such as buying corporate debt that has so far been a taboo subject for a central bank in which the voice of countries like Germany listening with much respect.
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