Mario Draghi tipped to extend QE again
With eurozone inflation stuck near zero for almost two years and Brexit now threatening to undercut the region’s recovery, economists see ECP president Mario Draghi as highly likely to lengthen quantitative easing for a second time. That would take the asset-buying programme beyond its current end-date of March 2017 and above the target of €1.7 trillion.
More than 80% of economists in a Bloomberg survey expect such a decision, with a similar share predicting the ECB will tweak its purchasing rules to avoid running out of securities to buy. Almost half of respondents foresee action on Thursday, when the governing council sets policy in Frankfurt, with almost all the rest predicting an announcement at the October or December meetings.
