Frankfurt — Mario Draghi’s message to investors on the future of his quantitative-easing (QE) programme on Thursday could have been boiled down to three words: less is more. Strenuously denying a "taper" is in place — or was even discussed by policy makers — the European Central Bank (ECB) president cut the institution’s monthly bond buying to €60bn from €80bn. He also added three more months of purchasing than economists expected, and followed up by saying QE was essentially open-ended and inflation would remain too feeble well past the supposed new end-date. That mixed message sent investors scattering in different directions, with some focused on the near-term curtailment of QE and others hailing the additional injection of liquidity. But ultimately, the €1.14-trillion programme that started in 2015 has now morphed into a buying spree of at least €2.28-trillion that could help to shield investors through the political minefield of European elections next year. "Draghi has rightfu...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.