Latest News Headlines
Commercial Credit News
|Eurozone: Further and better quality monetary easing|
|Friday, 11 March 2016|
Commenting on today’s ECB announcements Ana Boata, European Economist at Euler Hermes, said: “The ECB has reinforced its monetary policy. As expected, it cut its key interest rates: -5bps to 0% for the refi rate and -10bps to -0.4% for the deposit rate and it expanded its quantitative easing (QE) programme to EUR80bn each month from EUR60bn.
“Positive news came from the change in the type of assets purchased to investment-grade, non-financial corporation bonds, while expanding the limit of sovereign bond purchases (to 50% per issuer from 33%). Buying corporate debt will ease financing costs for corporates and improve their profitability. In addition, the ECB decided to launch another series of four-year, targeted and longer-term refinancing operations (TLTRO II) starting in June, with the last operation set to mature in 2021.
“This should offer attractive financing conditions for banks (today at 0%) and, in turn, further ease private sector financing conditions as banks will have access to even cheaper liquidity if they increase their loan portfolios.
“ECB President Mario Draghi said that measures on interest rates would progressively give way to non-conventional measures, said to be more efficient. We believe the ECB will act again at the end of 2016 to support inflation recovery. The ECB expects inflation at +0.1% in 2016, +1.3% in 2017 and +1.6% in 2018.”
Forums International Ltd
Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.
Find out more here.
The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.
CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.
As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.
Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.
GTS Media Ltd
81 Cambridge Road
Registered in England No: 05483197