LIVE – The ECB will inject at least 1100 billion to help … – Le Figaro

LIVE – The ECB will inject at least 1100 billion to help … – Le Figaro

The ECB is therefore preparing to formalize its asset purchase program (QE) in the amount of 500 to 1,000 billion according to estimates. Perplexed, enthusiastic, careful … the views of analysts diverge:

Quilvest Management: “A priori, this amount seems to live up to market expectations. But in reality, the pace of purchases is not supported enough for a program that spans twenty months “

XTB France. ” reminder, a amount less than € 500 billion allocated to this program would tend to greatly disappoint the markets. Beyond 500 billion, and especially beyond 700 billion QE would be clearly seen as a very positive sign in the eyes of exchange operators leading to a sharp drop in the euro and a rise in European indexes ” according

Saxo Bank: “If the QE turns out to be 50 billion a month over a year, it would be very disappointing. This amount corresponds to the lower area of ​​the terminal estimates of economists is between 500 billion and 1 trillion euros. It would be very far from the bazooka expected by some. However, it is not excluded, judging by the rumors that the program is spread over a longer period of 18 months for example. In this case, it would be a great surprise since talk of $ 900 billion. QE would undoubtedly be credible to the market “

Natixis Asset Management (Philippe Waechter.): ” The ECB intervention is necessary because today the growth in trend is nil since the first quarter of 2011 and inflation is slightly negative. The ECB can not be satisfied with such a configuration. It must act. If the application does not resume while the euro is low, the oil price is reduced and that monetary policy is very accommodative then there is real questions to be asked about the ability of the economy of the area one day find a capacity to grow “

CMC Markets. ” The ECB does directly purchase sovereign debt or he will be intermediated by the program national central banks? What would be the procurement allocation key country? Disappointment of investors’ risk and therefore market correction is not to rule, if the ECB does not provide enough information on these technical elements. These will indeed crucial in assessing the scope and effectiveness of the program “

OECD (Catherine Mann.): ” to be effective, must QE be unlimited, as in the United States. If the ECB sets a limit, markets that always want more will want to test this limit (…) All countries would gain some more than others. ” However, “for the QE work, you need a combination of things: a more favorable fiscal policy to growth and reform”

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