ECB Draghi Aims to Impress But Unclear if Rest of CB Will Let Him

With a multitude of problems facing the euro zone, European Central Bank (ECB) chief Mario Draghi last month called on European policymakers to work together to make the region more resilient.

Draghi added the central bank was ready to do its part, which many market watchers took to mean that more stimulus is forthcoming at the ECB’s meeting later this week.

Michala Marcussen, chief economist at Societe Generale, wrote in her morning note on Monday, the key actions from the ECB are likely to be a cut in the deposit rate and an extension of the targeted longer-term refinancing operations.

“We do not expect the pace of asset purchases to be increased,” she wrote, adding, “Our main concern is that, whilst the bank will continue to signal its willingness to do whatever it takes, its ability to provide further significant stimulus is becoming more limited.”

via CNBC

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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