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17 October 2016

Reuters: ECB to maintain status quo when it meets on October 20: traders


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When asked what the ECB would do by year-end, 11 of 19 traders said the ECB would make no changes to policy. The remainder said it would extend quantitative easing beyond March 2017, increase the amount of monthly asset purchases, or both.


The European Central Bank will keep policy unchanged, even as pressure builds on the central bank to do more, according to a majority of euro money market traders.

The euro zone's central bank may discuss technical adjustments to its asset purchase scheme but a decision could be deferred until December, sources familiar with the discussion said.

Euro zone inflation was just 0.4 percent in September on an annual basis, nowhere near the ECB's 2 percent target ceiling, but 15 of 19 traders said the ECB would keep policy unchanged.

The other four traders expect the ECB to announce an extension to its monthly bond-buying beyond its current end-date in March 2017.

Full article



© Reuters


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