Liquidity is, has been, and will continue to be a key variable in the new order
UBS, Generali Insurance Asset Management, NN IP and Candriam reflect on PEPP
Says it will purchase treasury and mortgage-backed securities ‘in the amounts needed’
But will they step in to safeguard the system from climate risks?
Central bank will hold auctions of multi-year loans at low rates and will not raise interest rates until 2020
Sovereign borrowing fuelled by QE has reached about $60trn and the bill must eventually be paid, French group warns
ECB has ‘no ammunition left’ after QE ends to cushion fallout from the next downturn, a Swedish selector fears
ECB may opt to extend QE if slowdown continues and political situation in Italy worsens, say analysts
The European Central Bank will end its quantitative easing (QE) programme at the end of December 2018 in line with most industry expectations.
Slowing growth, low inflation and political risk in Italy suggest ECB will extend its asset-buying programme into 2019 and as a result push rate hikes further into the future, says asset manager.