ECB Preview: The bond buyind scheme to keep the euro afloat
|The European Central Bank (ECB) is widely expected to announce an increase in its stimulus measures when it meets on Thursday in Frankfurt. Joseph Trevisani, an analyst at FXStreet, expects a prosperous euro after the meeting.
Don't miss Yohay Elam's ECB Preview
Key quotes
“An expansion of the €750 billion Pandemic Emergency Purchase Program (PEPP), the bank’s bond buying effort launched in March, will likely be accompanied by the long-standing warning that the main burden of European recovery must be borne by the national governments.”
“The ECB will update its economic estimates on Thursday and Ms Lagarde has said she expects the eurozone to contract between 8% and 12% this year.”
“In March the ECB projected a 1.6% inflation rate by 2022, that forecast will most likely be reduced in Thursday’s economic estimates. Neither central bank has been successful in the post-financial crisis decade in bringing inflation to their target.”
“The additional PEPP limits and the cheerleading Ms Lagarde will give to the new EU program should keep the euro buoyant.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.