According to Rabobank analysts, the ECB doesn't need to under-deliver with its new information to spice up inflation expectations.
Key Quotes
“Market’s rate expectations have recently shifted to 40bp cuts within the next twelve months, creating it tough for the ECB to outdo these expectations.”
“Therefore we tend to currently suppose ECB conjointly should add QE of regarding EUR 40bn per month for twelve months.”
“A coinciding announcement in Sep is probably going, with Gregorian calendar month as potential begin date.”
“We believe government bonds can conjure for the majority of purchases. To the extent this can be required to permit for these purchases, the establishment limit is a lot of probably to travel than the capital key.”
“Corporate bonds is also enclosed within the purchases, however bank bonds and equities won't.”
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