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Significance
At a press conference after the previous meeting on October 22, ECB President Mario Draghi was clear that downside risks to the inflation outlook might lead to a reassessment at the December meeting of the degree of monetary policy accommodation necessary.
Impacts
Non-energy inflation remains historically low, weighing down headline inflation; the latter might fail to pick up as expected.
Sub-national bonds might be included in the QE programme as soon as March 2016.
The yield floor on the asset purchase programme could be removed.
If the ECB under-delivers, inflation expectations may become dislodged, while fixed income and forex markets will tighten.
Keywords:
EU,
EUR,
EURO-AREA,
economy,
industry,
banking,
bonds,
capital flows,
consumer,
corporate,
debt,
energy,
exchange rate,
finance,
monetary,
policy,
prices,
growth,
hard commodities,
investment,
oil,
private sector,
public sector
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2015
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