Most analysts predict the bank’s 60-billion-euro ($67.4 billion) monthly bond purchases will continue and interest rates will remain at historic lows. Bond-buying and low interest rates were introduced at a time when the ECB feared the threat of deflation — or steadily decreasing prices the undermine economic activity. Observers now expect the ECB to highlight economic risks “balanced” between positive and negative, justifying dropping one or both commitments to signal growing confidence in the economy. Draghi told European Parliament lawmakers last week he is “firmly convinced” the eurozone’s newfound robustness depends on ECB interventions. Taper tantrumThe ECB is keen to avoid financial market upsets as it heads for the exit from its bond-buying program.

Source: Manila Times June 06, 2017 03:11 UTC