QE Impacting Eurozone Economy
World Economy

QE Impacting Eurozone Economy

The European Central Bank’s trillion-euro quantitative easing program is already having a significant impact on the eurozone economy, a Reuters poll of money market traders found.
At its monetary policy meeting in January, the ECB said it would buy 60 billion euros of mostly sovereign bonds every month from March until at least September next year to try and bring inflation back to its target.
Just a month since the money printing program got under way, 14 of 21 euro money-market traders said it was having a meaningful effect, while seven said it was not.
“It’s driving real interest rates lower and in time, it will work its way into the real economy. Inflation is ticking up a little bit. The euro under pressure against the dollar will certainly help in the near-term,” said a euro money market trader.
Inflation in the eurozone has been negative for four months. The latest official data showed it was -0.1 percent in March compared to February’s -0.3 percent while in January prices fell 0.6 percent.
Since the announcement in January, the euro has weakened nearly 7 percent against the dollar and is expected to ease to around $1.04 in a year.
The survey also showed the ECB is expected to allot 105 billion euros at its weekly operation, less than the 108.3 billion euros from last week.


Short URL : http://goo.gl/H85PCA

You can also read ...

French Foreign Minister Jean-Yves Le Drian addresses CEDRE Conference in Paris on April 6, with Lebanese Prime Minister Saad Hariri on his right.
With the FIFA World Cup over and French victory secured,...
Dubai’s new business licenses in the second quarter of 2018 were down 26% from the same period in 2016.
In Dubai’s posh Jumeirah Beach residence district, luxury...
Handout picture shows IMF Managing Director Christine Lagarde on a screen as she speaks  during the G20 meeting taking place in Buenos Aires, on July 21.
The International Monetary Fund warned world economic leaders...
Germany Lifts Turkey Sanctions
Germany has lifted economic sanctions on Turkey and relaxed...
Farnborough Airshow Announces $192b in Orders
England’s Farnborough airshow this week saw deals worth $192...
Australia  Faces Massive Economic Crash
Australia is facing an economic shock akin the global...
IFC to Inject $2 Billion in Egypt’s Private Sector
International Finance Corporation, a member of the World Bank...
According to a survey, 75.3% are facing difficulties in running their businesses this year.
South Korea’s major business lobby said Sunday it will file an...