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4 Dec 2014
Oil impact on medium term outlooks in EZ - RBS
FXStreet (Guatemala) - Analysts at RBS noted the ECB stating “We will also evaluate the broader impact of recent oil price developments on medium-term inflation trends in the euro area” …
Key Quotes:
“In short, the market will infer the reference to oil prices as an unambiguous QE accelerant; we don’t necessarily disagree”.
“But we should note that President Draghi was keen to acknowledge that the impact of falling oil prices on the Eurozone’s input bill was unambiguously positive. More to the point, we suspect that some Council members will stress the disposable income channel”.
“President Weidmann recently referred to falling energy prices as a small stimulus programme noting that…
We certainly react differently to energy prices than a wage-price spiral … Price developments are currently strongly driven by energy prices which are a positive supply shock”.
Key Quotes:
“In short, the market will infer the reference to oil prices as an unambiguous QE accelerant; we don’t necessarily disagree”.
“But we should note that President Draghi was keen to acknowledge that the impact of falling oil prices on the Eurozone’s input bill was unambiguously positive. More to the point, we suspect that some Council members will stress the disposable income channel”.
“President Weidmann recently referred to falling energy prices as a small stimulus programme noting that…
We certainly react differently to energy prices than a wage-price spiral … Price developments are currently strongly driven by energy prices which are a positive supply shock”.