donderdag 28 augustus 2014

ECB Quantitative Easing 2014

The eurozone is on the verge of entering a deflationary period as we can see on the inflation chart below from Tradingeconomics. The inflation rate for the eurozone came in at just 0.4% for August 2014.

The chart below from the ECB shows long term interest rates with maturity of 10 years. As you can see, bond yields are plunging, indicating subdued growth expectations.

'la Caixa" research recently put up a chart that shows that excess liquidity in the eurozone is drying up. We are now going under the 150 billion euro threshold level of excess liquidity, which is very important.

Go here to read the analysis.

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