ETF Securities Research Blog

The ECB: To infinity and beyond?

Co-author: Martin Arnold – FX & Macro Strategist

We believe the ECB decision to extend its Asset Purchase Programme (APP) while reducing the monthly amount by EUR20bn is extremely prudent and forward looking, reflecting rising inflation risks on the back of higher oil prices and the increasing prospect of higher fiscal spending next year. What’s more we believe the ECB is applying a precautionary approach to the potential inflationist risks associated to the rise of populist parties in Europe. Read more…