ECB to restart QE from October - Reuters poll
|The European Central Bank (ECB) will cut its deposit rate next week and announce a restart of quantitative easing (bond purchases) program from October, according to the latest Reuters poll of nearly 70 economists conducted between Aug. 29-Sept. 3.
Key points (Source: Reuters)
- Nearly 90% of respondents expected the ECB to announce the restarting of its money printing presses, with monthly purchases of €30 billion from October.
- Almost 90% of respondents said the ECB would introduce some form of compensation for banks to offset the unwelcome side-effects of negative interest rates.
- Nearly 70 economists were expecting the ECB to cut its deposit rate at its Sept. 12 meeting, with the vast majority predicting a 10 basis point reduction to -0.5%.
Note that the Eurozone money markets are now pricing a 60% chance of a 20 basis point cut in the deposit rate from the current minus 0.4%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.