1. Newsroom
  2. What is the ECB’s strategy?
Menu
Insight 29.01.2018

What is the ECB’s strategy?

What is the ECB’s strategy?

Focus on the ECB’s monetary policy: still accommodative, but for how long?


  • In the eurozone, momentum remains positive and the growth scenario has been regularly revised up. 2.1% is expected for 2018.
  • Inflation is still below target (1.3% y/y vs 2%), recent EUR strengthening has postponed any rebound in inflation.
  • The ECB has already reduced its government bond and credit purchases from EUR 60 bn to EUR 30 bn; these amounts should stay unchanged until September 2018.
  • Several ECB governors have recently changed their minds and adopted a less dovish view on QE and interest rate management.
  • Despite inflation remaining low, the ECB should shift to less dovish communication in Q2 as strong growth continues.
  • The ECB is increasingly likely to end its QE next September.
  • A first rate hike, expected around Q2-2019, will be the first step in its exit strategy.

graph-eurozone.jpg


Convertible Bonds

Convertible bonds add convexity to your portfolio

Find out why convexity works in the short-to-long term

Watch the videos

Most read

Insight 19.02.2020

Changes in consumption patterns

Despite being fast-moving and quite unpredictable, changes in consumption patterns are expected to reshape the economic landscape.

Insight 15.04.2020

The Case For Frontier Debt

Fixed-income frontier markets have seen significant growth in both importance and liquidity over the past decade. While still mainly thought of as part of global EM investments, frontier markets have “grown up” and deserve to be considered separately.

Insight 22.04.2020

Impact Report 2019: an eventful year

UBP is proud to release the second edition of its Impact Report.

Further reading

Insight 02.06.2020

Hong Kong Market Assessment as Geopolitical Risk Intensifies

Hong Kong’s Hang Seng Index (HSI) underperformed and bucked the global risk-on trend spurred by expectation of economies re-opening.

Insight 20.05.2020

Why choose impact in emerging markets?

UBP’s expert Mathieu Nègre explains why impact investing in listed emerging equities is a significant investing opportunity for at least two reasons.

Insight 18.05.2020

Clouds gathering on the horizon

Spotlight - We see three key risks on the horizon: secondary outbreaks in the US, rising US-China geopolitical tension and political fragmentation in the Euro area