OctaFX | OctaFX Forex Broker
Open trading account

ECB may become compelled for a more radical approach - Rabobank

FXStreet (Guatemala) - Analysts at Rabobank noted that qualitative or credit easing (CE) has played a dominant role in the ECB’s measures in recent years.

Key Quotes:

“Because the focus in these measures is on the repair of the mechanism that transmits the ECB’s monetary policy to the private sector. In this research note we take a closer look at the question whether the policy has been successful and/or whether it will be so in the coming years. Specifically, we look at the interest-rate pass-through channel”.

“The sobering conclusion is that even when we focus on the pure ‘pricing’ component (the rates charged on new loans), the impact of past and recent measures appears to be disappointing”.

“We would highlight the lack of growth as one of the stumbling blocks, especially when seen in a broader context of financial institutions still being focused on de-leveraging”.

“This, in turn, leads us to believe that if growth will continue to disappoint, the ECB will feel compelled to shift to more radical, quantity-oriented, policies”.

GBP/USD bulls stalled at 1.58 so far - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that GBP/USD pressures its daily highs right above the 1.5800 figure, helped not only by dollar weakness, but by a pretty fair UK GDP revision to 3.0% as expected.
Read more Previous

AUD/USD breaks above 0.8565/70, focus back to 0.86

AUD/USD has chewed through stops above 0.8565/70, taking the rate to a new session high of 0.8581, as sentiment towards the Australian Dollar improves following upbeat Australian Capex numbers, which adds to Dalian iron ore futures up over 2%, another positive input.
Read more Next
Start livechat