The latest survey of economists conducted by Bloomberg showed that a majority of them believe the European Central Bank (ECB) is expected to boost its bond-buying program further in the coming months to stimulus the tepid economic recovery.
Key takeaways
“More than half of respondents in a Bloomberg survey predict an increase in the ECB’s 1.35 trillion-euro pandemic purchase program ($1.5 trillion) by December, with most expecting an extension and a top-up of 500 billion euros.
The Governing Council is seen keeping its policy unchanged when it meets next week.
Expectations that the ECB will need to do more highlight the extraordinary uncertainty surrounding the recovery from the crisis.
Economists in the survey predict the ECB will halt emergency purchases by the end of 2021.
They also expect it to hand banks another 240 billion in long-term loans this year, and said a worse-than-anticipated recession in the euro area is still one of their key concerns.”
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