UBS analysts expect the European Central Bank’s (ECB) balance sheet will expand to €5 trillion in 2020 on the targeted long-term refinancing loans (TLTRO) – III credits and quantitative easing program, according to a tweet by popular Twitter analyst Holger Zschaepitz.
The balance sheet was 4.67 trillion Euros or 41% of the Eurozone gross domestic product at the end of July.
The Bloomberg calculations show the combined balance-sheet growth of the ECB, Federal Reserve and the Bank of Japan will reach almost $100 billion a month by the end of this year.
The ECB is currently buying bonds at €20 billion per month and the program is expected to continue until “shortly before it starts raising the key ECB interest rates”.
The targeted longer-term refinancing operations (TLTROs) are Eurosystem operations that provide financing to credit institutions with an aim to preserve favorable borrowing conditions for banks and stimulate bank lending to the real economy.
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