According to the latest Reuters poll of economists, the European central bank (ECB) is likely to signal a move away from its ultra-loose monetary policy by September, in the wake of improving economic prospects.
Key Quotes:
“Most respondents in the latest poll, taken May 11-17, said even though they haven't yet altered their numbers, they were more upbeat on the euro zone and France after independent candidate Emmanuel Macron won the French presidential election.
Nearly three-quarters of the 37 economists who answered an extra question said they had not changed their growth forecasts for France either but most felt more optimistic.
The latest poll of over 80 economists conducted in the past week forecast the euro zone's economy would grow at a quarterly pace of 0.4 percent for the rest of this year.
31 of 43 economists who answered an additional question said the ECB will signal it is winding down its monthly asset purchases by September, with six of those expecting the central bank to move as early as next month.
When asked what would likely trigger the ECB to signal a move away from its ultra-easy monetary policy, economists cited healthy economic data as the main reason.”
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