Within a week after European Central Bank President expressed his willingness to expand the program of quantitative easing, it will receive a series of economic data, which will serve as one of the key factors in this decision. In the meantime, investors and economists can get some information about the forthcoming decision, watching the performances of the four members of the Executive Board of the ECB, three of which are scheduled for the coming days.
While Mario Draghi acknowledged that domestic demand remains steady, fears over a slowdown in emerging markets, the strong euro and the potential consequences of falling oil prices continue to signal the risk for growth and inflation.
"To a large extent it becomes clear that the ECB is ready to take further measures to ease monetary policy in December. The only question is how far they will go - whether it will be the expansion of the bond purchase program, or a package of additional measures, "- said the chief economist of the eurozone markets BNP Paribas SA in London Ken Uottret. "The economic data that will be released during this period, will be essential."
Against the background of the threat of deflation in the region, the report on consumer prices may very well be the most anticipated this week. According to the forecasts of economists, in October index was unchanged after falling 0.1 percent in September. The decline in consumer prices in the previous month was the first since March, when the ECB launched a program of bond purchases in the amount of 1.1 trillion euros ($ 1.2 trillion).The report on consumer price inflation and unemployment data for September are expected on Friday.
Before speaking Mario Draghi at a press conference on Thursday, more than 80 percent of economists surveyed by Bloomberg, predicted expansion of the program QE, of which 56 per cent said that it will happen by the end of this year, and 30 percent of respondents - in the first quarter of 2016.
Last week, the first time since August of this year, the euro against the US dollar fell below $ 1.10. As of 13:26 in Frankfurt, the single currency traded at $ 1.1022. In the period from October 22 eurozone currency has fallen by about 2.5 percent.
After rising 1 percent in the second quarter, according to forecasts of economists, the Spanish economy in the period from July to September expanded by 0.8 percent.
Economists lowered their inflation forecast for 2017 economic growth next year will be weaker than previously expected. In the third quarter economic growth also slowed in the UK and the US, which will release preliminary data on Tuesday and Thursday, respectively. Data on euro area, there only 13 of November.
Until then, economists and investors can rely on the comments of the ECB officials. ECB Vice President Vitor Constancio, and members of the Executive Board of the Bank Benoit and Peter Ker Praet gave a speech this week. Speech by Sabine Lautenshlege expected to November 2nd.
According to the materials Weltrade