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23 Sep 2014
Euro area losing fight against too low inflation - Nomura
FXStreet (Bali) - There are increasing signs the euro area is losing the fight against too low inflation, notes Nomura.
Key Quotes
"We believe the euro area might be entering a new chapter of its post crisis management phase with rising signs of a de-anchoring of long term inflation expectations."
"We believe the Jackson Hole speech might have been the turning point when ECB President Draghi suggested that the ECB no longer had the ability to bring nominal growth back up by itself."
"Absent an imminent and massive spending programme on the fiscal front, we believe medium term inflation will become de-anchored. At this stage, it looks unlikely that sovereign bond purchases could invert that trend."
Key Quotes
"We believe the euro area might be entering a new chapter of its post crisis management phase with rising signs of a de-anchoring of long term inflation expectations."
"We believe the Jackson Hole speech might have been the turning point when ECB President Draghi suggested that the ECB no longer had the ability to bring nominal growth back up by itself."
"Absent an imminent and massive spending programme on the fiscal front, we believe medium term inflation will become de-anchored. At this stage, it looks unlikely that sovereign bond purchases could invert that trend."