Draghi: “Qe at the start March 9.” In sharp upward estimates of GDP … – Il Sole 24 Ore

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This article was published on March 5, 2015 at 15:45.
The last change is the March 5, 2015 at 18:56.

The European Quantitative easing will be officially launched March 9, as anticipated by the Sole 24 Ore, and not end September 1, 2016. This was announced by the ECB president, Mario Draghi, during the press conference after the Governing Council in Nicosia (Cyprus). Together with purchases of sovereign bonds will continue purchases of other securities, the overall pace of 60 billion Euros per month. “We’ve already seen a number of positive effects after the announcement of the shift towards a more expansionary monetary policy,” said Draghi, who has made it clear, about the timing of quantitative easing, that the transaction will not be closed until inflation will not be returned to the levels set. It is true that is estimated to decline further, to zero in 2015 against 0.7% forecast in December, but already in 2016 should rise to 1.5% against 1.3% estimated in December. In 2017, then, should reach 1.8%, therefore, fully in line with the objectives of th e ECB a price dynamics close but below 2 percent.

They share Eurozone GDP and inflation
Another good news: the signals available to the board of directors of the Eurotower indicate a strengthening of the more robust economic recovery in the euro: + 1.5% in 2015, up 1.9% in 2016, 2.1% in 2017. The business activity in the euro has already marked “further improvements” earlier this year and “the recovery is expected to expand and strengthen gradually,” said Draghi. The drop in oil helps the purchasing power of households and corporate profitability, but the activities remain hampered by adjustments of financial statements that are needed in several areas.

But the reforms must be implemented quickly
Ultimately, commented satisfied Dragons, “our monetary policy measures have worked.” Yet “ ;a cyclical recovery based on our forecasts of March leaves no room for complacency.” Remains “crucial implement quickly and decisively and credible structural reforms, not only to increase the growth potential but also to improve the incomes and encourage businesses to invest.” Fiscal policies should continue to support the recovery in full respect of the posts envisaged by the Stability and Growth Pact.

Amount and securities to buy
The amount of the program of Quantitative easing will be minimum 1,140 billion euro, 12% of which are invested in securities of supranational institutions (EFSF, EIB). The ECB can buy government bonds that are considered investment grade (ie, with a rating above the level of junk) by at least one ratings agency. Exemptions are provided for those countries that are following a plan for international assistance. That is why Greece will be out until the creditor institutions have not concluded international verification in progress.

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