Draghi says farewell and reiterates his call for more fiscal action

Following the announcement of bold policy action in September, there was no further policy change at President Draghi’s farewell meeting. Instead, the outgoing President defended his policy decisions and made clear that for further action the ball was now in the field of fiscal policy.

  • Market Commentary

Highlights:

  • At today’s meeting, the Governing Council unanimously decided to not change its policy stance while continuing to see risks on the downside and maintaining a dovish bias.
  • Concerns about QE restrictions becoming binding in the new QE program were downplayed but no details about the composition were provided.
  • In his farewell press conference President Draghi reiterated his call for stronger fiscal action and talked down the rift within the Governing Council.
  • Looking ahead, we expect the ECB to stay on hold for the time being.

Download the full publication below

DRAGHI SAYS FAREWELL AND REITERATES HIS
CALL FOR MORE FISCAL
ACTION
DOWNLOAD
PDF
MORE INSIGHTS

RELATED INSIGHTS

READ NOW
COVID-19 FACTS & FIGURES
Oxford University/AstraZeneca vaccine will undergo a new global trial as critics questioned the claim that it could protect up to 90% of people against coronavirus. Hetero, one of India’s leading pharmaceutical companies, agreed to produce over 100 million doses of Sputnik V vaccine. Brazilian president Jair Bolsonaro said he will not take a coronavirus vaccine.
READ NOW
Generali Global Infrastructure launches two infrastructure funds to support the European recovery
Milan – Infrastructure assets are considered key in re-shaping a sustainable and resilient recovery path for Europe together with a greener, more digital and people-centered world. To support this transformational shift Generali Global Infrastructure1 (GGI), a boutique focused on infrastructure debt and part of Generali Group’s multi-boutique asset management platform, has launched two infrastructure funds supporting the European recovery.
READ NOW
EUROPEAN DEFAULTS LIKELY TO STAY LOW
Since March, credit markets have retraced a large part of the Covid-related spread widening, alongside rebounding risk sentiment. Although the rally has been substantial, it has remained defensive with IG outperforming HY on a beta- adjusted basis. The main reason in our view have been concerns about rising defaults.
MORE INSIGHTS