- ECB measures may include sovereign bond buying
Comments are from a letter to EU lawmakers and there’s nothing that we don;t already know.
EUR/USD took a spill on the headlines to 1.1771 from 1.799 but has jumped back to 1.1785 just as quick
Looks like Mr Draghi has been busy early in the new year writing to various MEP’s as he’s written 6 letters which you can find here
Here’s a snap of the type of thing he’s saying. It’s all par for the course.
Early this year, the Governing Council will reassess the monetary stimulus achieved through the set of measures implemented in the second half of 2014, the expansion of the Eurosystem’s balance sheet achieved through these measures, and the outlook for price developments. Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate. This may imply adjusting the size, pace and composition of the ECB’s measures. Such measures may entail the purchase of a variety of assets ‒ one of which could be sovereign bonds, as mentioned in your letter
