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22 Apr 2015
ECB remains committed to QE - Nomura
FXStreet (Guatemala) - Analysts at Nomura explained that the ECB has been keen to stress the Governing Council intends full implementation of its asset purchase programme.
Key Quotes:
"Pushing back against the (premature) idea of either tapering or a possible early exit in response to better economic data. While Executive Board member Yves Mersch’s comments hold (ie. that ECB actions could be adjusted in either direction depending on the inflation outlook), inflation surprising to the upside is not our base case, even though it is difficult to disagree with the ECB’s baseline in the short term."
"We continue to lack the conviction that core inflation will pick up as strongly as the ECB staff projects in the medium term to be confident that the ECB staff projections will be realised and purchases can stop by the end of September 2016."
Key Quotes:
"Pushing back against the (premature) idea of either tapering or a possible early exit in response to better economic data. While Executive Board member Yves Mersch’s comments hold (ie. that ECB actions could be adjusted in either direction depending on the inflation outlook), inflation surprising to the upside is not our base case, even though it is difficult to disagree with the ECB’s baseline in the short term."
"We continue to lack the conviction that core inflation will pick up as strongly as the ECB staff projects in the medium term to be confident that the ECB staff projections will be realised and purchases can stop by the end of September 2016."