The European Central Bank (ECB) has just announced that its quantitative easing (QE) programme will remain at the current monthly €60 Billion until the end of December 2017.
They have also announced that they will taper this to €30 Billion Euros from January 2018 to September 2018, or further, if required. Europe’s central bank stated that this will be subject to change in the event of a less positive economic outlook.
The ECB has also kept interest rates unchanged, saying that they expect these to remain the same for some time yet.
David Johnson, Founding Director at currency specialist, Halo Financial, commented: “None of this was any surprise to market participants and that explains the lack of volatility in the Euro. A half a cent variation as these announcements were made was hardly exciting, but the ECB doesn’t really have much reason to make major changes.”
“Eurozone inflation is running at 1.5% (below the ECB’s target level), Gross Domestic Product (GDP) growth is a reasonable 1.7% on an annualised basis; and yet unemployment is still at a painful 9.1% level.”
“Until things look a little rosier in every area of the garden, substantial monetary tightening isn’t even on the cards.”
Following Draghi’s press conference, the Euro dropped further to a three-week low against its major currency partner, the US Dollar, on the confirmation that it is very unlikely that the ECB will raise interest rates in the near future.
About Halo Financial
Halo Financial is a leading UK foreign exchange brokerage, offering a comprehensive range of services to individuals and businesses since its inception in 2005. The business prides itself on offering a flexible and personalised approach for each of its clients, simplifying the seemingly complex foreign exchange market to maximise savings in currency transactions, protect against currency risk and make money go further.
Staffed by qualified technical analysts, the company is authorised by the Financial Conduct Authority and HM Revenue and Customs.
“Excellent”, “Reliable”, “Professional”, “Knowledgeable”, and “Helpful”– just some of the great feedback received as a Gold Trusted Service Provider for Feefo.com. The team at Halo are proud that customers rate their services so highly and are happy to recommend to others. The company is always striving to provide the best possible service and to innovate services and products in line with customers’ ever-evolving needs.
Halo Financial won Best Customer Focus category in the 2016 Best Business Awards; received OPP Gold for Best Supporting Service; the Gold Award for Financial Support and Innovation from Relocate Magazine, Commendations in the 2016 and 2017 Moneyfacts Awards and has 5 out 5 Star Customer Gold Merchant Status via independent review website, Feefo.com, winning their Gold Trusted Service award.
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