The European Central Bank has been one of the two main providers of global monetary easing since 2015, and that seems likely to persist throughout 2017. Despite its continuing importance to the setting of global monetary conditions, the bank’s policy deliberations have made only little waves in the markets since deflation risks abated last year.
The eurozone economy seems to be in an increasingly healthy state, at least from a cyclical point of view, and monetary conditions appear to be normalising across the entire region. The latest rounds of asset purchases have proved more successful than previous doses, primarily because they have reduced sovereign and other credit spreads in the troubled economies, thus bringing monetary assistance to countries that needed it most. Read more