Corp bonds is one of the markets that are still an option to grow balance sheet
Open questions remain on program
There has been no discussion and no decision in the governing council
ECB shouldn’t be too activist on monetary policy
ECB has no present need for QE legal assessment
Inflation expectations remain “quite obviously” still anchored (Yes, they are “quite obviously” at or close to the 2% target
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Would support QE on risk of long-lasting deflation
Sees inflation rising next year
Rising wage levels in Germany good for Europe
Euro is irreversible
The QE talk has nudged EUR/USD lower to 1.2652. Reuters had a headline saying that the ECB were at the juncture for QE but left of the “not” part after “were” and that helped to shake the euro lower too. That’s been corrected and we’ve bounced to 1.2663
