According to the latest Bloomberg survey of economists released on Friday, the European Central Bank (ECB) is unlikely to amend its bond-buying program at its monetary policy meeting next Thursday, though it could change the phrasing of the statement.
“The ECB will spend the entirety of its 1.85 trillion euro ($2.2 trillion) stimulus program, according to 52% of respondents, up from 40% in June. Economists expect monthly purchases to drop by 5 billion euros to 75 billion euros in August, when financial markets are less liquid, before slowing further in October.”
“To smooth the transition to post-crisis policy, officials will expand bond purchases under an earlier, less flexible program in April, up to 30 billion euros per month from 20 billion euros now.”
“The largest risk to the euro-area economy, according to the survey, is new virus types, which might lead to another round of lockdown measures, followed by supply-chain disruptions, which are afflicting many enterprises, and inflation pressures.”/n
