Slim chances of ECB action in next meet, says Citi

Ahead of the ECB meet on Thursday, Jurgen Michels of Citi feels chances of ECB action is very little taking into consideration the stands taken by the German Federal Bank, Bundesbank and Spain's reluctance to ask for support from the EFSF.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Masteryourmoney Earnings
moneycontrol.com

Home » News » Markets » FII View

Aug 01, 2012, 08.11 AM | Source: CNBC-TV18

Slim chances of ECB action in next meet, says Citi

Ahead of the ECB meet on Thursday, Jurgen Michels of Citi feels chances of ECB action is very little taking into consideration the stands taken by the German Federal Bank, Bundesbank and Spain's reluctance to ask for support from the EFSF.

Like this story, share it with millions of investors on M3

Slim chances of ECB action in next meet, says Citi

Ahead of the ECB meet on Thursday, Jurgen Michels of Citi feels chances of ECB action is very little taking into consideration the stands taken by the German Federal Bank, Bundesbank and Spain's reluctance to ask for support from the EFSF.

Post Your Comments

Share Cancel

Jurgen Michels (more)

Economist, Citi Group |

Ahead of the ECB meet on Thursday, Jurgen Michels of Citi feels chances of ECB action is very little taking into consideration the stands taken by the German Federal Bank, Bundesbank and Spain's reluctance to ask for support from the European Financial Stability Facility (EFSF).

Michels believes, for a  third round of quantitative easing, the economy has to go through more weakness. Hence, in a situation like this, there is hardly any hope for a decisive action from the ECB this week, he tells CNBC-TV18.

Here is the edited transcript of the interview on CNBC-TV18.
 
Q: What are you expecting of the ECB particularly on Thursday and do you think if there is no bond buying programme announced, we could have a sharp sell off in risk assets?

A: The big move in the market after statements from Mr. Draghi last week that the ECB would do everything to preserve the euro and we had also suggested that the ECB is also willing to go ahead with purchases in the markets. We have seen more news from European leaders including Ms Merkel, Mr. Monti, Mr. Hollande and others said, we are prepared to do everything.

I think regarding the ECB, the comments of Mr. Draghi nevertheless were not very well coordinated with the rest. We have seen criticism from the Bundesbank, particularly regarding those measures. I think it depends pretty much on the question, if this bond purchase would come along and in that respect it's very important to see that Spain asks for support from the EFSF through relied programme.

If that does not come, the chance of ECB action is rather small. In that respect, the ECB might disappoint on Thursday because we have not seen any signs from Spain to ask for support. Yesterday again Spanish officials highlighted that they do not think about asking the EFSF to support the summon.

1 2

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Slim chances of ECB action in next meet, says Citi

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login