With just a day to go before the European Central Bank’s (ECB) hotly anticipated policy meeting, there’s a lot of talk about President Mario Draghi’s options to help revive the moribund euro zone economy.
After the central bank has cut rates and unveiled ultra-cheap long-term loans, many believe Draghi is running out of options to tackle slowing price rises and stubbornly low bank lending. One of the most discussed – and controversial – stimulus measures is some form of bond-buying program.
Now – following comments by Draghi at Jackson Hole in late August – expectations of some sort of quantitative easing (QE) program have been heightened. But it’s not quite as simple as that. There’s two types of bond-buying available – but which is which and which is the most likely?
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.