ECB: Expect QE to come to an end in Q4 2018 - HSBC

Analysts at HSBC expects QE to come to an end in Q4 2018 by ECB in spite of a stronger growth. 

Key Quotes

“When the current QE programme expires in December, we expect the ECB to extend its asset purchases for another three months at a reduced purchase rate of EUR40bn. We still anticipate this announcement at its September meeting (or at the latest in October, after the German election on 24 September). In early 2018, inflation should be low due to base effects from energy, which we think will prompt the ECB to announce another three-month extension at EUR40bn per month. After that, we expect one final extension, at the reduced rate of EUR20bn per month for another three months. By Q4 2018, we think the ECB will no longer be buying assets other than to reinvest the proceeds of maturing assets.”