At the same time, the global economic recovery remains highly uneven, and this has translated into a growing policy divergence between the major central banks.
In particular, the Eurozone has in recent quarters experienced a renewed loss of economic momentum and a drift in inflation rates towards very low levels, which have prompted the European Central Bank to provide additional accommodation, first in the form of targeted long-term repo operations, and then via the announcement of a programme to acquire asset-backed securities and covered bonds on the central bank’s balance-sheet.