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 ...

China and India continue to remain the most promising investment destinations in 2017.
Developing Asia is expected to witness a 15% increase in...
Thai CB Retains Key Rate
Thailand’s central bank on Wednesday left its key interest...
Brazil Raises Deficit Ceiling
Brazil is raising its deficit ceiling for this year and 2018...
Elon Musk, Kevin Plank, Bob Iger, Richard Trumka, Kenneth Carleton Frazier
The honeymoon is definitely over. When US President Donald...
Riksbank is under pressure to tighten its ultra-loose monetary policy.
Underlying inflation topped the Swedish central bank’s target...
At 310% GDP, China’s banking sector is above the advanced economy average and nearly three times  the emerging market average.
China's economy is looking good enough that the International...
Crude oil accounts for 96% of exports and around half of state revenue.
Venezuela might look bad right now amid protests, scarce food...
US Household Debt at $12.8 Trillion
US household debt reached a new record in the second quarter,...