ECB Holds Rates Committed to QE

The European Central Bank has no plans to curb or curtail its money-printing program although it expects euro zone economic recovery to broaden and strengthen.

Last month the ECB embarked on an asset-buying program with 60 billion euros a month of news money, which it has said will last until at least September 2016.

“Our focus will be on the full implementation of our monetary policy measures,” ECB President Mario Draghi said on Wednesday.

“Purchases are intended to run until the end of September 2016 and, in any case, until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates below, but close to, 2 percent over the medium term.”

At the last count, euro zone inflation was running at -0.1 percent.

Draghi said he was surprised at speculation about exiting the program early since it was only a month old.

His news conference was disrupted when a woman in a black T-shirt jumped on the podium, shouting: “End the ECB dictatorship.”

via Reuters

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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