The European Central Bank won’t end its asset-buying program early, though it might do so abruptly, economists say.
More than two-thirds of respondents in a Bloomberg survey said the ECB will stop quantitative easing in September 2016, as currently planned, and most of those said it’ll do so without tapering purchases. The remaining analysts said policy makers will gradually wind the program down, with the end-date ranging from December 2016 to December 2017.
Massive stimulus from record-low borrowing costs, a weaker euro and cheaper energy is stoking speculation over how quickly the ECB might reach its inflation goal and complete a 1.1 trillion-euro ($1.2 trillion) program that started only last month. The risks related to policy tightening were highlighted in 2013 when global market volatility escalated as the Federal Reserve signaled it was ready to taper its own QE.