QE may follow Greek elections

The ECB might have a window of opportunity next week to start buying Italian and Spanish bonds as part of a so-called quantitative easing programme if an anti- bailout party wins the Greek election this weekend, said Nomura International.

“Markets are behaving as if we are heading toward a breakup and this is very, very worrying for the euro area,” Jens Sondergaard, senior European economist told reporters yesterday.

“The ECB should cut rates by 50 basis points and launch outright QE.”