ECB set to scale up stimulus as new data could indicate a need to do more
Christine Lagarde, President of the European Central Bank, speaks to the media following a meeting of the ECB governing board at ECB headquarters on March 12, 2020 in Frankfurt, Germany.
The European Central Bank (ECB) is expected to increase its coronavirus crisis asset-purchase program at this week’s meeting, amid fears of falling inflation and the steepest economic contraction since World War II for the euro zone.
In March, the ECB unveiled its Pandemic Emergency Purchase Programme (PEPP), which will see it buy 750 billion euros ($819 billion) in euro zone government bonds this year. Analysts are now expecting it to increase that number.
“We see a 60% probability that the ECB will raise its asset purchase target on Thursday, probably by 500 billion euros,” Florian Hense, from Berenberg Economics, wrote in an analyst note.
“Gloomy staff projections for growth and inflation …continued .
[Source: CNBC News]