The European Central Bank (ECB) will cut the size of its monthly asset purchases in half from January next year, the bank’s president Mario Draghi announced on Thursday. Bond and equity markets, as well as the euro, hardly responded to the announcement.
A meeting of the European Central Bank heralded few surprises on Thursday, but added fuel to speculation QE will continue past 2017.
The ECB’s latest salvo in the fight against the prospect of deflation was initially met positively by markets. But, a lack of a clear message that the Bank will cut rates further from here sent markets falling again almost as quickly.
ECB President Mario Draghi disappointed markets on Thursday. While the Bank delivered a 10 basis point cut to the deposit rate to an historic -0.3%, and extended the deadline of its asset purchase programme by six months, it kept the main refinancing and marginal lending rates steady at 5 and 30 basis points respectively.
European Central Bank president Mario Draghi disappointed markets on Thursday. While the bank delivered a 10 basis point cut to the deposit rate to an historic -0.3%, and extended the deadline of its asset purchase programme by six months, it kept the main refinancing and marginal lending rates steady at five and 30 basis points…
Kames Capital has consolidated its UK and global equity teams with the appointment of a head of equities.
While there is little indication that the eurozone will be able to boost growth significantly in the short term, investment in the region remains robust, with a number of wealth managers currently overweight.
