Back
14 Jan 2015
Draghi to breath a sigh of relief after ECJ’s interim ruling – MP
FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis at MarketPulse, feels that today’s ECJ’s interim ruling gives Draghi and his fellow policy makers some relief and perhaps more artistic rights to implement QE.
Key Quotes
“Even though the initial headlines from the ECJ’s advocate general ruling looks good for the ECB, there remains unanswered questions on how the court rules objections raised earlier by Germany’s highest court on the controversial bond-buying program.”
“The key takeaway from the ECJ’s “interim” ruling is that unconventional measures from the ECB are legal provided they are adequately explained. The ECB can legally buy large quantities of eurozone sovereign debt to stabilize the EUR currency’s economy. Draghi and his fellow policy makers are now able to breath a sigh of relieve as they prepare for another round of stimulus measure."
"In what shape support will come is anyone’s guess, but giving the ECB the opportunity to implement QE gives policy makers more artistic rights.”
“This morning’s ruling from the ECJ comes in response to a lawsuit brought by German opponents for looser monetary policy claiming that the ECB’s OMT program, announced nearly three-years ago, violates the European Union treaty. While opinion is not binding on the court, the judges usually follow the advocates ruling. A final ruling is expected in four to six-months.”
Key Quotes
“Even though the initial headlines from the ECJ’s advocate general ruling looks good for the ECB, there remains unanswered questions on how the court rules objections raised earlier by Germany’s highest court on the controversial bond-buying program.”
“The key takeaway from the ECJ’s “interim” ruling is that unconventional measures from the ECB are legal provided they are adequately explained. The ECB can legally buy large quantities of eurozone sovereign debt to stabilize the EUR currency’s economy. Draghi and his fellow policy makers are now able to breath a sigh of relieve as they prepare for another round of stimulus measure."
"In what shape support will come is anyone’s guess, but giving the ECB the opportunity to implement QE gives policy makers more artistic rights.”
“This morning’s ruling from the ECJ comes in response to a lawsuit brought by German opponents for looser monetary policy claiming that the ECB’s OMT program, announced nearly three-years ago, violates the European Union treaty. While opinion is not binding on the court, the judges usually follow the advocates ruling. A final ruling is expected in four to six-months.”