“With bond yields subject to high volatility, high-debt countries in particular must be wary of the risks associated with a reversal of current low interest rates“. This is the warning launched by the number one of the ECB Mario Draghi referring to the increase in interest rates by the Fed expected for the end of the year 2015.
In a note published on the occasion of the meeting of the International Monetary Fund in Lima, Peru, Draghi also reiterated the willingness of the European Central Bank to change the profile of Quantitative Easing. The Frankfurt institution could change the size and duration of the current securities purchase plan, which plans to continue at least until September 2016, with the aim of bringing inflation back in Europe below, but close to 2%.
"The ECB - said Draghi - is ready to use all available tools in the face of economic developments and can vary the composition, duration and size of Quantitaive Easing".
