"A non-event," so that James Knightley, senior economist at ING, expects the monthly meeting of the Board of Governors of the ECB, which will take place today in Frankfurt. "After the decision in December to extend the 'Quantitative Easing' (QE), but at a slower pace, the ECB is almost in autopilot mode for the rest of 2017".
This decision, which consisted in extending the plan of asset purchases in the euro area by the ECB at the end of this year (the previous deadline was end of march), but reducing to 60 billion euros per month from the previous 80 billion, arose naturally download the expectations for the next meeting.
however, you should not miss questions directed to Mario Draghi at the press conference scheduled for 13: 30, because there is an issue that is going to create something out of expectation – the 'tapering' or the gradual way in which the GOVERNMENT can adopt to reduce the purchases in the QE to zero.
The big question is about when the 'tapering' might start, as one of accelerating inflation in the euro zone in December is rekindling calls for the GOVERNMENT to reduce the purchases of assets, calls this especially flown in from Germany.
"The rise in inflation in Germany may encourage the opponents of QE," said Tomas Holinka, economist at Moody’s Analytics, Bloomberg. "However, we believe that any discussion is premature and we expect that the ECB will wait until the price increase is sustainable and that the political uncertainty atenue".
analysts vary by the news agency were unanimous about the absence of measures in the meeting today, but three-fourths of the economists expected that the next ECB announcement on modifications to the program of stimuli must not reach before the end of September, while two-thirds estimated that the central bank will reduce the volume of purchases but also to extend it beyond the end of the year.
The minutes of the December meeting highlighted the divisions in the Council of Governors, with the 25 members unable to reach a unanimous decision on QE.
Draghi should have to respond also to other types of questions, and completely different. The Italian authorities last week arrested two people for hacking the emails of thousands of people, including Draghi and former prime minister Matteo Renzi. The e-mail account from Draghi at the Bank of Italy, an entity of which he was governor, was targeted, but it is not yet known the content that the attackers accessed.
"The idea that a leakage of information on sensitive topics, from monetary policy to the emergency measures for Greece, is to cause concern," he told Reuters.
(Why?)
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