TOKYO, Sept. 13, 2018 /PRNewswire/ - Oita Sumitomo Corporate has commented saying that the European Central Bank (ECB) will lower its policy stance on inflation.
Researchers at Oita Sumitomo Corporate have said that it has been made clear, due to recent data figures that The European Central Bank will change its course due to a lack of growth in the market.
The European Central Bank has said that they will be committed to slow down the rate of purchasing new bonds towards the end of 2018, the euro zones central bank has said it will come to a total halt in 2019 while keeping its key interest rates at 0.4 percent.
Mario Draghi did insist that The European Central Bank was consistent with its 2 percent target falling just slightly short for both 2018 and 2019.
"There is a lot of tension in the euro zone with ongoing geopolitical issues weighing down confidence, I doubt that any clarification will be made on its interest rate stance within the next few days." said Matthew Andrews, Head of Corporate Trading at Oita Sumitomo Corporate.
The previous years that the rates were in negative territory bought over 2.5 trillion euros of debt, high borrowing costs and creating a double dip recession that nearly grinded the 19 member currency bloc to a halt.
While quantitative easing has produced positive results inflation is still staggering behind leaving investors unease.
"With the current health of the European Union we can see that a weaker euro will lead to higher gross domestic product (GDP) growth alongside with inflation levels rallying." Added Callum Price, Senior Vice President at Oita Sumitomo Corporate.
There is a lot of speculation on who will be Mario Draghi's successor at the ECB while they finalize their exit strategy.
SOURCE Oita Sumitomo Corporate