Quotes from Bank of Cyprus:
-Economic growth and inflation in the euroarea are disappointing and there is really scepticism of what else could the ECB do. These dark thoughts prevail as the ECB is hoping to expand its balance sheet by €1 trillion, through more private sector assets purchases and on a second phase buy government debt.
-We believe that the first action is straight forward to implement than the second one, since structural or better economic reforms are needed in order to elevate inflation expectations.
-Moreover, low energy prices are pushing inflation lower raising expectations of an immediate ECB action. Nevertheless, the Euro Area is ahead of a so-called full-blown QE programme, with a weak euro and at the bottom of its economic cycle.
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