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11 Sep 2015
ECB QE to extend by up to 2 quarters into 2017 – Goldman Sachs
FXStreet (Mumbai) - The European Central Bank (ECB) is likely to extend its ultra-massive asset-purchase program by up to two quarters into 2017, Goldman Sachs predicted in its recent note, pointing to persistently low inflation and weak recovery.
According to the investment bank, the ECB will decide to buy an extra €360 billion in QE purchases and said it expected an announcement on the details in coming weeks.
Analysts at Goldman noted, "The extension of the QE policy we now forecast is between one and two quarters, which, at a pace of €60 billion per month, amount to, at most, €360 billion, or around a third of the current program."
"Consistently, we think the shift in ECB policy mostly supports higher quality EMU issuers, and will not have a material first-order effect on EMU spreads - on which we remain neutral."
According to the investment bank, the ECB will decide to buy an extra €360 billion in QE purchases and said it expected an announcement on the details in coming weeks.
Analysts at Goldman noted, "The extension of the QE policy we now forecast is between one and two quarters, which, at a pace of €60 billion per month, amount to, at most, €360 billion, or around a third of the current program."
"Consistently, we think the shift in ECB policy mostly supports higher quality EMU issuers, and will not have a material first-order effect on EMU spreads - on which we remain neutral."