ECB seen keeping option to prolong bond-buying again in 2018: sources

Reuters/Francesco Canepa & Balazs Koranyi/09-19-17

European Central Bank policymakers disagree on whether to set a definitive end-date for their money-printing program when they meet in October, raising the chance that they will keep open at least the option of prolonging it again, six sources told Reuters.

A stubbornly strong euro, with its dampening effect on inflation, is driving a rift among ECB policymakers, the sources on the ECB’s Governing Council with direct knowledge of its thinking said.

…“The strength of the euro is the number one problem,” one of the sources said.

PG View: Some see euro strength not so much as evidence that the European economy is on firmer ground, but more that the U.S. and UK economies are weakening.

This entry was posted in Central Banks, ECB. Bookmark the permalink.

Comments are closed.