ECB Monthly Bulletin: Global growth risks eased but not disappeared

The European Central Bank (ECB) published its latest monthly economic bulletin, highlighting that the risks to the global growth remain tilted to the downside.

Key Details:

Risks diminished but tilted to downside

Chinese vulnerability over medium term remain elevated

On ECB’s QE programme:

55% of corporate bonds are German or French

12% of CSPP bonds have been bought at negative yields but above depo rate.

Bulletin states, “Risks of an abrupt shift in global financial conditions appear to have eased but not disappeared. Since the "taper tantrum" episode in 2013, when expectations regarding US monetary policy shifted abruptly, a combination of careful communication and a very gradual approach to monetary tightening by the US Federal Reserve System appears to have mitigated such risks somewhat.”