Citi Says Even Odds Of Eurozone QE By Year’s End

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Citi Says Even Odds Of Eurozone QE By Year’s End
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It’s no secret that the European Central Bank is worried about low inflation rates in Europe that look like they are heading toward deflation, or that ECB president Mario Draghi wants a weaker euro, but until now he hasn’t been willing to engage in Federal Reserve-style qualitative easing, preferring to work indirectly through the banks and through public guidance that hasn’t had as much of an effect on euro-dollar exchange rates as he may have hoped.

“We believe that the chances of unsterilized large-scale asset purchases (LSAPs) of public and private assets being launched this year have therefore increased to more than 50:50,” wrote Citi analyst Guillaume Menuet (h/t Sara Sjolin at MarketWatch).

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