The European Central Bank is holding its monthly meeting – an offsite gathering in Cyprus – and is about to commence its quantitative easing bond-buying programme.
Greece sent an economic reform plan to its EU and IMF creditors overnight, according to an EU source, and euro zone finance ministers will this morning see the list which is a condition for extending the country’s bailout programme by four months.
A year and a half after Citi became the first major bank to pencil a Bank of England interest rate hike into their forecasts, nobody appears to be any more sure of when this actually will happen.
Last night, after Greece’s new Finance Minister Yanis Varoufakis met Mario Draghi, the European Central Bank cancelled its acceptance of Greek bonds in return for funding, shifting the burden onto Greece’s central bank to finance its lenders, the latest reverse for the country’s new government.
Markets are beginning to ponder just how definitive the European Central Bank may be next week in launching quantitative easing. One reason is today’s ruling at the European Court of Justice.
So much for forward guidance. More Britons have no idea where interest rates are heading than since records began 15 years ago, according to the latest Bank of England/GfK NOP survey.
The European Central Bank meets today with the debate about quantitative easing running hot after Mario Draghi declared “excessively low” inflation had to be raised fast and that the ECB would act more forcefully if its existing efforts to pump money into the ailing euro zone economy fall short.