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27 Feb 2015
Doubts arising on ECB’s QE – AceTrader
FXStreet (Barcelona) - The AceTrader Team comment that economists are wary of ECB’s QE programme and doubt if it will lead to revival in lending to the real economy and fuel demand.
Key Quotes
“The ECB's bond purchase programme, which includes sovereign debt, will run from March until September 2016 or until inflation shows signs of picking up pace.”
“The ECB is expected to expand its balance sheet by about 1.1 tln euros by the end of next year, matching its level of early 2012, when the euro zone debt crisis raged.”
“35 of 81 economists expect the ECB to close out its QE programme by September 2016, on its intended schedule. Forty said the central bank will need to extend it beyond that date, while the remaining 6 said the ECB will conclude bond purchases before then.”
“But economists are not convinced the programme will lead to a revival in lending to the real economy and fuel demand.”
“The liquidity flush by the ECB back in 2012 did not materially improve loans to the private sector at that time either.”
Key Quotes
“The ECB's bond purchase programme, which includes sovereign debt, will run from March until September 2016 or until inflation shows signs of picking up pace.”
“The ECB is expected to expand its balance sheet by about 1.1 tln euros by the end of next year, matching its level of early 2012, when the euro zone debt crisis raged.”
“35 of 81 economists expect the ECB to close out its QE programme by September 2016, on its intended schedule. Forty said the central bank will need to extend it beyond that date, while the remaining 6 said the ECB will conclude bond purchases before then.”
“But economists are not convinced the programme will lead to a revival in lending to the real economy and fuel demand.”
“The liquidity flush by the ECB back in 2012 did not materially improve loans to the private sector at that time either.”