Draghi keeps the dream alive, “expected” is now “intended” but “not yet a target”

ECB President Mario Draghi kept the dream alive for the quantitative easing enthusiasts who believe that when all else fails, buy government bonds! The only real change in the ECB’s statement was the use of the word “intended” rather than “expected” in relation to returning the balance sheet to the level at the beginning of 2012, meaning an increase of c. €1 trillion. Questioned on the “stronger language”, Draghi confirmed: “yes indeed, intended is different from expected. It’s not simply an expectation; it’s an intention, but it’s not yet a target. So it’s something in between. It’s something in between”.