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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%.
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
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