{"id":11552,"date":"2016-10-17T10:49:09","date_gmt":"2016-10-17T07:49:09","guid":{"rendered":"http:\/\/bestinsurance.gr\/a1\/?p=11552"},"modified":"2016-10-17T10:49:09","modified_gmt":"2016-10-17T07:49:09","slug":"draghi-seen-embracing-more-before-less-qe-as-inflation-edges-up","status":"publish","type":"post","link":"https:\/\/bestinsurance.gr\/a1\/archives\/11552","title":{"rendered":"Draghi Seen Embracing More Before Less QE as Inflation Edges Up"},"content":{"rendered":"<div data-animation=\"no-animation\" data-icons-animation=\"no-animation\" data-overlay=\"\" data-change-size=\"\" data-button-size=\"0.7\" style=\"font-size:0.7em!important;display:none;\" class=\"supsystic-social-sharing supsystic-social-sharing-package-flat supsystic-social-sharing-content supsystic-social-sharing-content-align-left\" data-text=\"\"><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed facebook\" target=\"_blank\" title=\"Facebook\" href=\"http:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F11552\" data-main-href=\"http:\/\/www.facebook.com\/sharer.php?u={url}\" data-nid=\"1\" data-name=\"\" data-pid=\"1\" data-post-id=\"11552\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-facebook\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">0<\/span><\/div><\/a><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed twitter\" target=\"_blank\" title=\"Twitter\" href=\"https:\/\/twitter.com\/share?url=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F11552&text=Draghi+Seen+Embracing+More+Before+Less+QE+as+Inflation+Edges+Up\" data-main-href=\"https:\/\/twitter.com\/share?url={url}&text={title}\" data-nid=\"2\" data-name=\"\" data-pid=\"1\" data-post-id=\"11552\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-twitter\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">0<\/span><\/div><\/a><\/div><p>Draghi Seen Embracing More Before Less QE as Inflation Edges Up.With consumer prices barely rising and the recovery still fragile, the majority of respondents in a Bloomberg survey predict the European Central Bank president will prolong bond-buying. That decision is more likely to be taken in December than at this week\u2019s policy meeting, and most analysts say the program won\u2019t start to be wound down until the second half of 2017. Even then, the ECB is only expected to act if euro-area inflation is holding above 1.5 percent.<\/p>\n<p>Officials are under pressure to reveal their strategy for QE, which is soaking up 80 billion euros ($88 billion) a month of debt and is currently scheduled to run through March 2017. While questions have surfaced about how the ECB will ultimately reduce the stimulus, for now the focus is on how to ensure purchases can proceed amid increased scarcity in some markets.<\/p>\n<p>&nbsp;<\/p>\n<p>[expander_maker more=&#8221;\u0394\u03b9\u03b1\u03b2\u03ac\u03c3\u03c4\u03b5 \u03c0\u03b5\u03c1\u03b9\u03c3\u03c3\u03cc\u03c4\u03b5\u03c1\u03b1&#8221; less=&#8221;\u0394\u03b9\u03b1\u03b2\u03ac\u03c3\u03c4\u03b5 \u03bb\u03b9\u03b3\u03cc\u03c4\u03b5\u03c1\u03b1&#8221;]\u201cCentral bankers have to think about how long the QE program should and can last, and it\u2019s very important for Draghi to\u00a0sound flexible,\u201d said Maxime Sbaihi, an economist at Bloomberg Intelligence in London. \u201cThere are still more doves than hawks in the Governing Council, meaning that the balance of power is consistent with more easing. Any tapering decision would only come after a time extension.\u201d<\/p>\n<figure class=\"inline-image inline-media center \">\n<div class=\"inline-media__unlinked-image\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ivpaRQhDElnM\/v2\/488x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ivpaRQhDElnM\/v2\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ivpaRQhDElnM\/v2\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ivpaRQhDElnM\/v2\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ivpaRQhDElnM\/v2\/-1x-1.png 1200w\" data-attachment-key=\"305293355\" \/><\/div>\n<\/figure>\n<p>Seventy-eight percent of the 50 economists surveyed by Bloomberg from Oct. 7-14 forecast the ECB will announce fresh stimulus, and nine in ten of those say it will happen in December at the earliest. Few expect action when the 25-member Governing Council meets in Frankfurt on Thursday to set policy.<\/p>\n<p>The share of those predicting an extension of asset purchases has increased since the central bank\u2019s last policy meeting in September. At the same time, fewer see more rate cuts on the horizon as concerns mount that negative rates are squeezing profitability for the region\u2019s lenders.<\/p>\n<figure class=\"inline-image inline-media center \">\n<div class=\"inline-media__unlinked-image\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ihw6G7Dz.A5c\/v2\/488x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ihw6G7Dz.A5c\/v2\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ihw6G7Dz.A5c\/v2\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ihw6G7Dz.A5c\/v2\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ihw6G7Dz.A5c\/v2\/-1x-1.png 1200w\" data-attachment-key=\"305292056\" \/><\/div>\n<\/figure>\n<p>\u201cGiven negative side effects on banks, the ECB will probably not cut rates further,\u201d said Philippe Gudin, chief European economist at Barclays Plc in Paris. On the other hand, a extension of QE \u201cis very likely.\u201d<\/p>\n<div data-view-uid=\"1|0_3_1_11\"><\/div>\n<p>That decision would probably require a change in the program\u2019s rules. The Governing Council tasked the ECB\u2019s committees last month with examining potential options, after Executive Board member Benoit Coeure told officials that purchases were leaving an increasing \u201cfootprint\u201d in financial markets\u00a0and some bonds were getting scarce.<\/p>\n<p>Seventy-three percent of survey respondents said the ECB will change its QE parameters.<\/p>\n<figure class=\"inline-image inline-media center \">\n<div class=\"inline-media__unlinked-image\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/i5qNk7VlLstg\/v2\/488x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/i5qNk7VlLstg\/v2\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/i5qNk7VlLstg\/v2\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/i5qNk7VlLstg\/v2\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/i5qNk7VlLstg\/v2\/-1x-1.png 1200w\" data-attachment-key=\"305292048\" \/><\/div>\n<\/figure>\n<p>Draghi has stressed that the program has enough flexibility to achieve its purpose of contributing to a sustained adjustment in the path of inflation toward just under 2 percent &#8212; a level the ECB hasn\u2019t reached since early 2013. He said on Oct. 8 that price growth will be in line with the central bank\u2019s target by early 2019 at the latest.<\/p>\n<p>Economists in the survey were less optimistic. Only two thirds predict inflation will be in line with the ECB\u2019s goal before Draghi\u2019s term expires in October 2019. That\u2019s unchanged from last month, and down from 85 percent at the end of last year.<\/p>\n<p>Even though the pickup in price growth is gradual, policy makers have started to think about how to slow stimulus when the time comes.\u00a0While the Governing Council hasn\u2019t formally discussed the topic, an informal consensus has built among officials that QE will eventually be tapered, Bloomberg reported this month.<\/p>\n<figure class=\"inline-image inline-media center \">\n<div class=\"inline-media__unlinked-image\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iV21WjCoGBvM\/v2\/488x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iV21WjCoGBvM\/v2\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iV21WjCoGBvM\/v2\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iV21WjCoGBvM\/v2\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iV21WjCoGBvM\/v2\/-1x-1.png 1200w\" data-attachment-key=\"305293071\" \/><\/div>\n<\/figure>\n<p>The majority of economists surveyed predicts that a phase-out of asset purchases will start in the second half of 2017 or later. They also said the ECB would probably want to see inflation above 1.5 percent for three consecutive months before signaling any tapering.<\/p>\n<figure class=\"inline-image inline-media center \">\n<div class=\"inline-media__unlinked-image\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ihSr.kvHXwT0\/v2\/488x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ihSr.kvHXwT0\/v2\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ihSr.kvHXwT0\/v2\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ihSr.kvHXwT0\/v2\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ihSr.kvHXwT0\/v2\/-1x-1.png 1200w\" data-attachment-key=\"305406248\" \/><\/div>\n<\/figure>\n<p>That will be a close call. Economists in a separate Bloomberg survey see euro-area inflation at 1.3 percent at the end of each of the third and fourth quarters of next year, accelerating to 1.5 percent by March of 2018.<\/p>\n<p>\u201cTapering at some point is a no-brainer, as the alternatives would be QE forever or a sudden stop,\u201d said Holger Sandte, chief European analyst at Nordea Markets in Copenhagen. \u201cBoth are unrealistic.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>Source:<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-10-17\/draghi-seen-embracing-more-before-less-qe-as-inflation-edges-up\" target=\"_blank\">link<\/a>[\/expander_maker]<\/p>\n","protected":false},"excerpt":{"rendered":"<div data-animation=\"no-animation\" data-icons-animation=\"no-animation\" data-overlay=\"\" data-change-size=\"\" data-button-size=\"0.7\" style=\"font-size:0.7em!important;display:none;\" class=\"supsystic-social-sharing supsystic-social-sharing-package-flat supsystic-social-sharing-content supsystic-social-sharing-content-align-left\" data-text=\"\"><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed facebook\" target=\"_blank\" title=\"Facebook\" href=\"http:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F11552\" data-main-href=\"http:\/\/www.facebook.com\/sharer.php?u={url}\" data-nid=\"1\" data-name=\"\" data-pid=\"1\" data-post-id=\"11552\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-facebook\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">0<\/span><\/div><\/a><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed twitter\" target=\"_blank\" title=\"Twitter\" href=\"https:\/\/twitter.com\/share?url=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F11552&text=Draghi+Seen+Embracing+More+Before+Less+QE+as+Inflation+Edges+Up\" data-main-href=\"https:\/\/twitter.com\/share?url={url}&text={title}\" data-nid=\"2\" data-name=\"\" data-pid=\"1\" data-post-id=\"11552\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-twitter\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">0<\/span><\/div><\/a><\/div><p>Draghi Seen Embracing More Before Less QE as Inflation Edges Up.With consumer prices barely rising and the recovery still fragile, the majority of respondents in a Bloomberg survey predict the European Central Bank president will prolong bond-buying. That decision is more likely to be taken in December than at this week\u2019s policy meeting, and most<\/p>\n","protected":false},"author":1,"featured_media":11553,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-11552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/11552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/comments?post=11552"}],"version-history":[{"count":1,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/11552\/revisions"}],"predecessor-version":[{"id":11554,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/11552\/revisions\/11554"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media\/11553"}],"wp:attachment":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media?parent=11552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/categories?post=11552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/tags?post=11552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}