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27 Jan 2014
Flash: Draghi sees dramatic turn in EZ fortunes - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that ECB President Draghi foresees a ‘dramatic’ improvement in Eurozone economic health.
Key Quotes
"The German manufacturing PMI survey released last week was according to Markit consistent with the real GDP growth expanding by up to 0.7% in Q1. ECB President Draghi stated on Friday that he sees signs of a “dramatic” improvement in the health of the euro-zone economy with “our accommodative monetary policy finally being passed through to the real economy”."
"However he also described the recovery as “still weak, still fragile, and still uneven”. President Draghi also gave an indication that the ECB would be more prepared to purchase packages of bank loans to households and companies rather than government bonds to combat deflation if required ahead."
"BoE Governor Carney also spoke at Davos on Friday and attempted to provide reassurance that there would no “immediate” rate hikes with the unemployment rate threshold soon to be met."
Key Quotes
"The German manufacturing PMI survey released last week was according to Markit consistent with the real GDP growth expanding by up to 0.7% in Q1. ECB President Draghi stated on Friday that he sees signs of a “dramatic” improvement in the health of the euro-zone economy with “our accommodative monetary policy finally being passed through to the real economy”."
"However he also described the recovery as “still weak, still fragile, and still uneven”. President Draghi also gave an indication that the ECB would be more prepared to purchase packages of bank loans to households and companies rather than government bonds to combat deflation if required ahead."
"BoE Governor Carney also spoke at Davos on Friday and attempted to provide reassurance that there would no “immediate” rate hikes with the unemployment rate threshold soon to be met."