Nomura Gives QE Next Week 75% Chance

As market participants await the European Central Bank’s next meeting,  analysts from Nomura says there is a high chance the central bank will implement quantitative easing in Europe on Thursday. “[W]e continue to expect the ECB to announce a large-scale asset purchase programme including sovereign bonds on 22 January (75% probability, revised up from 60% previously), in response to increased deflation risks and the ongoing de-anchoring of inflation expectations,” say the analysts. However, they add that the ECB’s move may not be enough to control the deflationary issues in the region. “We doubt balance sheet expansion can be substantial or timely enough against rising risks of too-low inflation,” they say.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza