A coworker opined that Draghi will stop easing via asset purchases soon. I wasn’t convinced. He mentioned inflation coming in near target, which is true. It is 1.9% vs. a 2% target. I decided to dig in to see where this number was coming from.
Germany at 1.7
France at 1.0
Spain at 3.0
Italy at 1.2
The numbers come in harldy uniform and don’t make a case to slow down, even if the target is reached. There may be other reasons besides inflation to slow down asset purchases. One reason being to position the central bank if worse conditions transpire.
Managing independent countries is a much higher hurdle than quasi dependent states here across the pond, so empathy is due. In addition, Draghi mentioned that energy costs were driving the headline number, causing a temporary increase.
Unemployment here and in the EU has been agrued as poor quality so any indication that the headline labor numbers are sparkling can be put to rest.
In all, I doubt asset purchases will stop anytime soon.