Weekly Market Outlook

European central banks less surprising than the BoJ.

As expected, the ECB did not launch a full-scale QE and the BoE chose to wait before starting normalizing rates. However, Mr Draghi confirmed that the ECB is fully dedicated to increase its balance sheet in order to curb declining inflation expectations. On the other hand, the release of the Quarterly Inflation Report on 12 November will give more clues on the timing of the first rate hike. For the time being, market expectations lean towards a more dovish stance, pricing a raise in rate in June 2015.

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