Economic news

October QE reduction looming, program to be closed before 2019

In October the ECB seems to declare a decrease in asset purchases they do each month, as most polled by Reuters analysts believe. They also think that the European Central Bank is going to round off the program before 2019.

The ECB’s inclination to cut on stimulus sparked firm growth in the euro zone in 2017, however, the inflation keeping at 1.5% is lower than the central bank’s target of close to 2%. July statements by the ECB showed no talks had been held as to the asset purchases decrease, though the message was that some changes are on the cards for the third quarter.

Vast majority of analysts polled by Reuters in the final days of August forecast the ECB is to declare changes this October. Though only 20 days ago in another poll a little over 50% of economists had said they anticipated such action to take place in September.

Among this poll’s economists only 15 said it’s going to happen on September’s meeting, and 5 expected they’ll declare it later – in December.

ING Financial Markets’ Peter Vanden Houte said that in the best case scenario the central bank will appoint a special committee to analyze how quantitative easing can continue in September, though the announcement and explanation of how QE will move on should be expected in October.


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