HALISTER1: Market Inflation Expectations Question ECB Effectiveness: Charts

Market Inflation Expectations Question ECB Effectiveness: Charts

(Bloomberg) -- EUR inflation expectations remain subdued despite the aggressive expansion of ECB’s balance sheet, as Draghi stressed exercising “patience” at ECB’s April meeting, see chart here.
  • 1Y HICPxT forwards stay flat from 10 yrs at ~1.7%, showing ECB’s ~2% target not expected to be met even in 20 yrs; see chart here
  • NOTE: Inflation markets snub Draghi as EUR gains blur target: see analysis here
  • NOTE: Tanvir Sandhu is an interest-rate and derivatives strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.
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Source: BFW (Bloomberg First Word)

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2539Z GR (European Central Bank)

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