What is the BCE maneuver of quantitative easing?
The last maneuver of the Central Bank, named Quantitative easing, is a quantitative facilitation that through a targeted purchase of bank assets and government bonds, increases the circulation of money in the system and produces greater effects or changes in the economy itself. The objective is in fact to relaunch above all the credit market with the creation of greater liquidity towards banks which, in turn, will be able to lend money to families and businesses with greater facilitations than in the past . In times of crisis in particular, there has been a sharp slowdown in the banking market in granting loans and mortgages to families and businesses, and inevitably this new maneuver promoted by the Central Bank is intended to provide a clear signal of economic recovery.
Forecasts of positive effects especially on mortgages and loans
On the basis, therefore, of what was promoted with the Mario Draghi maneuver, a first positive effect is expected on mortgages and loans, with a greater willingness on the part of the banks to grant new liquidity to households and businesses . Compared to the economic conditions of the loans, on the other hand, the most favorable spread variations are expected, ie the cost generally required by the banks for the granting of a home loan, against the objectives of the BCE maneuver to bring inflation back to percentages of the 2%. A goal that would make the stipulation of a variable rate mortgage less convenient, against a greater convenience of a fixed rate mortgage, which would not undergo changes in the installments due over time. The latest forecasts on the effects of the new BCE maneuver also point to an analysis also on deposit accounts and loans.
In the first case, there may be less convenience for families and businesses to deposit their assets into a deposit account, since this maneuver has made a cost for the collection of money by the banks lighter, which in the past have focused heavily on deposit accounts and on easier conditions just to get more liquidity from its customers. In the second case, better economic conditions could be envisaged with lower costs for lending to families and businesses. Positive forecasts for the new BCE maneuver also for government bonds, which could be affected by an increase in value in the coming months, especially towards those categories already in possession of the following securities in a phase prior to decision to introduce new liquidity in the system.