1 in 3 uni students experience serious financial hardship. Could concession cards for all help? 
AI is supercharging money scams – here’s what you can do to protect yourself 
Physicists zoom into the birth of cosmic rainstorms with new CERN study 
Synthetic data could ease people’s concerns about privacy breaches. But who gets to create it? 
China’s robots can run faster than Usain Bolt – now they are being prepared for war 
Unsustainable – or manageable? We don’t yet know how data centres will impact Australia’s environment 
Banking scandal rocks Brazil’s politics and the country’s presidential election in October 
Europe can’t achieve space sovereignty alone. Here’s why 
Add as a preferred source on Google
- President Mario Draghi of European Central Bank (ECB), yesterday has clarified that ECB is going to star its purchase programme from 9th March 2015 and went ahead to express utmost determination to successfully complete the programme.
- In the event of the programme, inflation expectations in the Euro zone have gone up as measured by 5y5y swap rate. The rate traded as high as 1.76 percent in last night's trading. ECB has so far been successful in reversing the falling trend. Current level is highest in almost three months.
- Even after the announcement of the purchase programme on January 22nd, the swap rates continued to fall and reached near 1.50 percent by January. Since then the comeback is quite stable and significant.
- Mr. Draghi pointed that the success of the programme can only be called, when this inflation expectation reach above 2 percent. Historically before the crisis the rates prevailed much higher than 2 percent.
- Nevertheless oil price and subdued economic activity is expected to continue to weigh on the inflation expectation and the swap rates in the near term. Even ECB expects subdued activity this year.
- ECB's staffs are projecting inflation of 1.5 percent in 2016 and 1.8 percent in 2017.
Euro may continue its downfall as ECB moves ahead with the purchase programme but could stage a sharp comeback should the swap rates rise faster than expected.
