ECB Preview: Asset Purchases program to end by the end of 2018 - Wells Fargo
|According to analysts from Wells Fargo, the European Central Bank will keep rates unchanged on Thursday. They see the end of the QE program by year-end.
Key Quotes:
“The Eurozone economy is growing steadily, but the inflation data there remain benign as evidenced by the 1.3 percent rate of CPI inflation reported in March. The ECB left rates unchanged at its most recent meeting in March; however, the accompanying policy statement removed language regarding the possibility of additional quantitative easing (QE) measures if the outlook deteriorates. After having already halved the pace of QE, we look for the ECB to eventually end its current €30 billion per month pace of asset purchases by the end of this year and begin to hike rates at some point in 2019.”
“The ECB meeting next week will give financial markets an idea of how policymakers’ intentions are evolving against a backdrop of only tepid inflation in Europe.”
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