More Easing Expected from BOE and ECB – Goldman

The European Central Bank said it would keep monetary policy loose for an extended period of time on Thursday, while the Bank of England said bond yields had risen too far, too fast.

Those statements from policymakers sparked a major rally in European stocks and weakness for the sterling and the euro.

It was the first time the ECB had offered explicit forward guidance about future policy, with ECB President Mario Draghi saying the central bank had an open mind on all rates, including the discount rate.

In a prescient piece of research, just hours before the two central banks issued their statements, Goldman Sachs said both the ECB and the Bank of England (BoE) could launch fresh monetary easing measures within months.
“More unconventional easing is likely in the U.K… In addition, the ECB is more likely than not to ease further from here,” said Goldman Sachs analysts in a global outlook piece published on Thursday.

CNBC

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