Flash Update; European Inflation – 25 November 2014
As we head toward the middle of an important week for the European economy, consensus expectations appear to match official projections in that many anticipate a further fall in euro area inflation at Friday’s November reading.
In addition to this, Mario Draghi’s speech in Frankfurt last week now appears to be widely viewed as a precursor of further downward revisions to the long term inflation outlook, therefore increasing the likelihood of additional monetary stimulus over the months ahead.
Given the relatively muted enthusiasm for, and scepticism over, the ECB’s TLTRO and ABS programs; it is likely that the central bank will explore alternative options the next time it is forced to act.
Regardless of policy maker views over the effectiveness of sovereign bond purchases, over the longer term it will be difficult for the ECB to say that it has done all it can without first having attempted some form of quantitative easing program.
For this reason we anticipate that the next move coming from the ECB will be some form of QE, although the question of whether this will be a wholehearted effort remains open.
.
IMPORTANT:
The contents of this report and the Stockatonia website (https://www.stockatonia.co.uk/) have been prepared to provide general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Please always remember that the value of investments may fall as well as rise. Investing in securities, and any other products associated with them, carries a high degree of risk and may not be suitable for all investors. For advice or guidance related to investing in securities markets, please consult with your own financial adviser.
Disclaimer
The information provided by Stockatonia, via both the telephone as well as the Stockatonia websites, is prepared as general information and general information only. As a result, the information in question does not constitute a recommendation to either buy and sell or not to buy and sell, any items or products treated as securities or financial instruments under UK laws and regulations.
To the extent that it is necessary, you agree not to act directly upon any information made available via telephone contact with Stockatonia and its representatives, as well as online contact with Stockatonia and its representatives, without first consulting your own financial adviser or investment adviser.
To the extent that it is permitted under the laws of the United Kingdom, Stockatonia and its representatives can accept no liability whatsoever in relation to losses incurred by clients, prospective clients and members of the public where these losses have arisen out of action, or inaction, which has taken place as a result of any form of contact with Stockatonia or its representatives.
This may be contact carried out by internet-driven media, letters and materials which are sent by post as well as information conveyed by Stockatonia and its representatives via the telephone.
Leave A Comment