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26 Nov 2014
Oil prices falling harms ECB’s quest - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained that the continued fall in oil prices won't do the ECB any favors.
Key Quotes:
"The continued fall in oil prices won't do the ECB any favors in its battle to arrest disinflationary forces. It will report the flash November CPI on Friday, ahead of next week's ECB meeting."
"Although some economists/analysts are predicting a sovereign bond purchase plan will be unveiled, we are less sanguine”.
“We understand recent comments as indicating that a consensus favors waiting until next year to see the second takedown of the TLTRO, which is expected to be substantially more than the first, and the covered bond and ABS purchases."
Key Quotes:
"The continued fall in oil prices won't do the ECB any favors in its battle to arrest disinflationary forces. It will report the flash November CPI on Friday, ahead of next week's ECB meeting."
"Although some economists/analysts are predicting a sovereign bond purchase plan will be unveiled, we are less sanguine”.
“We understand recent comments as indicating that a consensus favors waiting until next year to see the second takedown of the TLTRO, which is expected to be substantially more than the first, and the covered bond and ABS purchases."