Analysis: More QE, but Mario Draghi's not easing unrest among investors
Published 04/12/2015 | 02:30
Investors aren't happy with Mario Draghi. He's been blamed for overpromising and under delivering after he announced further measures to try to boost inflation, but didn't go nearly as far as had been thought.
So stock markets tumbled, and the value of the euro rose against both the US dollar and sterling.
Essentially investors expected Draghi to deliver a combination of rate cuts and a ramping up of the ECB's quantitative easing - ie, an increase to the €60bn monthly figure for buying assets. What he did was cut the interest rate which Eurozone banks pay on their deposits at the ECB further into negative territory, but not quite as far as had been anticipated. And he didn't increase the €60bn figure. Instead he simply extended the programme for another six months until March 2017. But he didn't rule out further action.
And the rise in the euro will be shortlived. The US Federal Reserve is on the cusp of hiking rates in the next two weeks, which will send the single currency lower. Assuming we don't have another over-promising central banker.