More QE may become counter-productive for ECB: Nick Parsons

It was "very clever" of European Central Bank (ECB) President Mario Draghi to conditionally extend the asset purchase program beyond March next year, says Nick Parsons of National Australia Bank. By in doing so, Draghi is trying to do a balancing act and buying time for himself until then, he told CNBC-TV18.  

Acting in line with expectations, the ECB Thursday kept its already loose policy stance unchanged and held benchmark interest rate at -0.4 percent. The ECB is hoping to revive inflation and growth by keeping rates negative and record high quanitative easing.

Talking on the quantitative easing (QE), he said more QE throws spotlight on unfavourable conditions prevailing in the economy. Parsons believes any further QE could be counter-productive in the financial stability and banking sector profitability of the system and would have a negative impact on business consumer confidence.

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