Global Economy - Aggressive action unlikely from Fed, ECB: Edelweiss

The Federal Reserve (Fed)  and European Central Bank (ECB) will be holding their monetary policy meets this week and expectations are high that both the central banks will undertake fresh accommodative measures to support the economy and markets. In our view, the Fed is unlikely to undertake QE3 at this stage as even though the economy has certainly lost pace, it is still miles away from deflation. As regards ECB meeting, we do expect some action such as revival of its dormant Securities Market Programme (SMP) to stabilise bond markets. Anything more aggressive than this, however, looks unlikely at this stage. 

Global Economy - Aggressive action unlikely from Fed, ECB

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