ECB fears on asset inflation

The ECB’s €1.1tn quantitative easing (money printing) programme will have a limited impact on the banking system, although it could lead to further economic imbalances through asset price inflation, according to a new report.

Ratings agency, Standard & Poor’s, says that the most positive effect quantitative easing will have on the Eurozone banking system will be over the medium term if it leads to a pick-up in economic activity in the region.

ECB president, Mario Draghi, announced in January from March, the bank would purchase up to €60bn of sovereign and corporate debt every month until September 2016.