- As expected, the ECB lifts its EU GDP growth forecasts for 2015 and 2016 to 1.3% and 1,9%, respectively, but expects inflation to remain negative in the months ahead.
- The €60B per month QE program of sovereign bond purchases is set to begin on Monday. It's expected to continue until the end of Sept. 2016, or until the central bank sees a sustained upward adjustment in the path of inflation.
- Market reaction: The euro (NYSEARCA:FXE) is all over the place, but currently down 0.25%, and the Stoxx 50 (NYSEARCA:FEZ) is at session highs, up 0.9%. Peripheral bond yields are on the way down, with Spain's (NYSEARCA:EWP) 10-year lower by five basis points to 1.32%, and Italy's (NYSEARCA:EWI) also by five to 1.35%.
- Previously: ECB stays on hold, press conference coming (March 5)
- Previously: ECB to raise growth forecasts, lower inflation projections (March 5)