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Analysts at the US investment banking giant, Goldman Sachs, believe that there is a scope for the European Central Bank (ECB) to restart its Quantitative Easing (QE) program, in the wake of deteriorating Euro area economic situation.

Key Quotes (via Bloomberg):

“A return to large-scale QE is complicated by the ECB’s self-imposed limits on its asset purchases. But significant headroom remains to expand corporate sector purchases and we estimate that the ECB could buy up to €400 billion in sovereign debt under the current constraints.

A limited QE program – for example, with monthly purchases of €30 billion for nine month – seems feasible within existing constraints.”