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16 Jul 2015
Draghi Q&A's on front loading QE - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained that, turning away from Greece, Draghi positively answered a question about frontloading of its QE programme.
Key Quotes:
"According to his statistics, the ECB had purchased about EUR 3bn of additional bonds in both May and June, and would be expected to do a little less than that in July. This suggests that the central bank reduced the amount to be purchased in August by about EUR 7-8bn. On the back of a EUR 50bn/month programme, this hardly seems substantial if the ECB is really worried about bond markets being largely closed in August. So either the market overestimated the significance of Coeuré's announcement and the ECB is content with the amount of frontloading achieved, or Draghi simply used the part that they were able to frontload as an excuse for lack of further acceleration of August purchases."
Key Quotes:
"According to his statistics, the ECB had purchased about EUR 3bn of additional bonds in both May and June, and would be expected to do a little less than that in July. This suggests that the central bank reduced the amount to be purchased in August by about EUR 7-8bn. On the back of a EUR 50bn/month programme, this hardly seems substantial if the ECB is really worried about bond markets being largely closed in August. So either the market overestimated the significance of Coeuré's announcement and the ECB is content with the amount of frontloading achieved, or Draghi simply used the part that they were able to frontload as an excuse for lack of further acceleration of August purchases."