View more on these topics

ECB cuts rates and extends QE until March 2017


The European Central Bank will extend the monthly €60bn asset purchase programme until the end of March 2017.

ECB president Mario Draghi today confirmed quantitative easing will continue “at least or until inflation reaches the ECB’s target of below or close to 2 per cent”.

The ECB has also expanded the range of assets being purchased, to include regional and local government debt.

Draghi said: “We will continue the QE because it worked not because it failed. We want to consolidate something that has been a success.”

However, Draghi has “slightly” cut his inflation forecast for the next two years.

In October eurozone inflation was 0.1 per cent and the expectation is that it will remain at that rate for the final two months of 2015. But Draghi has reduced the inflation expectation for 2016 to 1 per cent, down from the 1.1 per cent predicted in September.

He also lowered the inflation expectation for 2017, from 1.7 per cent to 1.6 per cent.

In addition, the ECB will cut the interest rate on the deposit facility – the rate banks pay to store money with the ECB – by 10 basis points to -0.3 per cent to encourage lending. This will happen from 9 December.

The central bank has also decided to hold its key interest rate at 0.05 per cent.

Draghi’s estimate for eurozone growth for 2015 is 1.5 per cent, slightly higher than the previous prediction of 1.4 per cent.

The ECB has retained its 1.7 per cent real GDP estimate for 2016 but lower the 2017 figure from 1.9 per cent to 1.8 per cent.


FCA interior 620x430

FCA investigates advisers over outsourcing pension transfer advice

The FCA has referred several advice firms and individuals to its enforcement division for outsourcing pension transfer advice to unauthorised firms. The regulator warns advisers who outsource activities to unauthorised firms face a “significant risk” to their business model and their professional indemnity insurance may be affected. The regulator says it has found firms delegating […]


How do we stop pension freedoms becoming the next big financial scandal?

When the Government pushed the door wide open for those aged 55 and over to draw their retirement savings with impunity there was no corresponding initiative to promote affordable independent financial advice. With literally million of savers now considering options other than annuities, access to alternative retirement income products is widely seen as a positive […]


Ball and chain: FCA under fire as advice confusion blocks guidance offerings

The FCA’s continuing failure to clarify regulatory grey areas is preventing providers from developing guidance solutions for consumers, industry experts warn. The FCA last attempted to explain its views on the boundaries between classes of consumer support in a January paper, which broke down advice offerings into categories of simplified, regulated, limited, focused and generic. But experts […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm