OK … this gonna be unpleasant for a moment or two. Bear with me.
Europe:
- Some of the euro zone is in recession, where there is growth it is weak, weak, weak
- Euro zone inflation fell to 0.3% last month
- Germany is continuing to refuse much in the way of fiscal stimulus
- Other governments are “taking their time” on economic reform (i.e. not really doing much at all)
So… what is the European Central Bank to do?
Calls are building for the launch of a program of sovereign-bond buying
- Reuters say “most signs (are) pointing to March for a decision”ECB President Draghi’s deputy, Vitor Constancio said last week: “Now, it’s too soon to make that assessment but indeed in early 2015 we have to look and assess if the (existing) programs are having the effect that we are expecting”Which raises the ECB’s March 5 meeting for a QE launch”The two meetings before then – in December and January – are seen as too soon; afterwards some believe it may be too late”
So … March the Goldilocks date? What say ye?