(Bloomberg) — Mario Draghi said the European Central Bank’s quantitative-easing program is working better than expected, even though the institution will take longer than intended to reach its inflation goal.
“We are satisfied with QE, as it has met and even surpassed our initial expectations,” the ECB president said in an interview with Greece’s Kathimerini published on Saturday. While “it presently appears that it will take somewhat longer than previously anticipated for inflation to come back to, and stabilize around, levels that we consider sufficiently close to 2 percent,” that is largely because of a drop in oil prices, he said.
Draghi cited lower borrowing costs, rising credit volumes and better access to loans for small businesses as signs that QE is having a positive effect. Even so, with the inflation rate below zero for the first time since March, and an emerging-market slowdown posing risks, he has said the ECB is ready to expand its asset-purchase program if needed.
So, is the ECB bond-buying part deux really working better than expected?
Yes Mario, Eurozone inflation is negative.
And the rate of growth in household lending is also negative.
And the poor French. Their unemployment level (aka, jobseekers) keeps exploding since 2007.
When Greek GDP growth is better than Germany and France’s GDP growth, you know you’ve got trouble!
So Mario, HOW is the ECB’s QE working better than expected? Unless you expected it to fail in the first place?