Back
15 Dec 2014
We expect large-scale, Fed-type QE – BAML
FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch explained that once implemented, QE will be large in the EZ.
Key Quotes:
“A sovereign QE program will face less legal hurdles than other monetary policy programs such as OMT, while the potential impact on confidence and inflation will be more direct”.
“We forecast bond purchases will range between €180 and €360 billion a year, and will not likely be constrained by the capital key”.
“The latest communication of the ECB suggests to us that the ECB could err towards the upper rather than the lower end of our range”.
Key Quotes:
“A sovereign QE program will face less legal hurdles than other monetary policy programs such as OMT, while the potential impact on confidence and inflation will be more direct”.
“We forecast bond purchases will range between €180 and €360 billion a year, and will not likely be constrained by the capital key”.
“The latest communication of the ECB suggests to us that the ECB could err towards the upper rather than the lower end of our range”.