The European Central Bank governing council holds its next monetary policy meeting on 26 October, where it is widely expected to announce plans to extend the quantitative easing programme in the euro area beyond the current end date of December 2017.
There are a range of challenges for continuing QE, from political opposition within core European countries, to financial limits imposed by the availability of eligible bonds in the euro area. Yet inflation remains below the ECB’s ‘close to but below 2%’ target, leading the ECB to acknowledge in September that ‘a very substantial degree of monetary accommodation is still needed’.
This report assesses the current state of QE and the factors that will affect the ECB’s decision on the future pace, composition and technical criteria of asset purchases.
Please fill out the form to download a copy of this report.
OMFIF is publishing a series of articles in the run-up to the 26 October meeting of the ECB governing council:
QE challenged by bond limits, by Ben Robinson
Strong euro poses dilemma, by Danae Kyriakopoulou
Weidmann and the ECB, by Julian Frazer
Queen Angela the Uneasy, by David Marsh
Long unwinding road for ECB, by Ben Robinson and Danae Kyriakopoulou
Dangers of fine-tuning euro area inflation, by David Marsh
Missing piece in QE puzzle, by Danae Kyriakopoulou
Cautionary note for Weidmann, by David Marsh
To tighten, or not to tighten, by John Plender
How to enhance ECB credibility, by Bert Rürup in Düsseldorf