ECB to take action within the framework of the QE programme – Danske Bank

Research Team at Danske Bank, suggests that in the near term, we expect the ECB to take action within the framework of the QE programme.

Key Quotes

“Potentially it could front-load purchases. The ECB could also purchase longer-dated bonds or buy more peripheral bonds without announcing changes. We look for an increase in the monthly purchases to EUR100bn. over the coming one to three months. This should be seen as a response to an unwarranted monetary tightening due to the negative market sentiment, which together with the weaker growth outlook threatens the medium-term outlook for inflation. We do not expect any rate cuts and the ECB also seems less focused on a weaker euro.”