If Mario Draghi and the European Central Bank (ECB) left investors frustrated after quantitative easing didn’t materialise yesterday, that frustration will only grow as the latest Eurozone GDP figures again revealed the weakness in the single market.Eurozone GDP figures for the third quarter were again weak, with quarterly growth for the 18-nation bloc bang on expectations at a somnolent 0.2 per cent and growth in the EU28 barely better 0.3 per cent. Italy was bedding into recession and France continued slumbering.
The US is added for context
There were some words yesterday that might have heartened investors that the ECB is willing to use any and all unconventional measures at its disposal to get the bloc growing. There were, however, splits on the council as doveish members were seemingly clashing with hawks who take the German line that QE could cause governments to renege on commitments to reform their economies.
There was a slight change in the forward guidance from the ECB, with expanding the balance sheet something the bank “intends” to do rather than merely “expects.” Draghi may have a fight on his hands: he said that unanimity was not essential to the use of such measures. Reported by City A.M. 6 hours ago.