piraeus bank group

Inflation rate & Long Term Expectations

There was no change in monetary policy in the recent ECB Conference. We think that it is quite possible for the ECB to continue the QE program after Mar. 2017 (with €80 bn or with smaller amount) as Draghi mentioned that there is no convincing upward trend in core CPI. Moreover, the long term inflation expectations (EUR IS 5Y/5Y) continue to be weak.