- European shares gain for a second straight session today with the Dax trading at new record highs supported by a weaker euro and the prospect of ECB bond buying, which will start next week. US Equities opened slightly higher too.
- The ECB announced that it will start to purchase government bonds on Monday March 9 and repeated that the ECB intends to buy assets at a rate of €60B/month with a possible maximum negative yield equal the deposit rate (-0.2%). Growth forecasts were substantially upwardly revised, while inflation is expected to reach 1.8% in 2017.
- Regarding Greece, the ECB agreed to a further €500 million of emergency liquidity assistance to Greek banks, but the recent agreement between Greece and its creditors was insufficient for the ECB to reintroduce the waiver.
- The Bank of England decided today to keep its policy on hold, maintaining both the Bank Rate and asset purchase target unchanged. The minutes will be published in two weeks, which should give more information on the debate within the MPC.
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