Highlights of Draghi’s ECB decision press conference Sept 4, 2014:
- Will buy non-financial assets
- Will buy broad portfolio of covered bonds
- Details will be announced after Oct 2
Everyone now waiting for the size of the program. Reuters reported 500 billion euros. This is the ECB’s first step into quantitative easing and the combined measures are more dovish than just about anyone forecast.
- ECB buying will hae sizeable impact on balance sheet
- Overall inflation outlook subdued
- Growth momentum has weakened
- Council is unanimous in using unconventional tools
- Measures will help inflation return closer to 2%
Draghi ECB press conference Sept 4
