ECB May Extend QE Into 2018, Goldman Says -- Market Talk
20 September 2016, 11:18
1118 GMT Goldman Sachs reiterates its expectations that the European Central Bank will extend its assets purchase program until end-2017, "with a strong likelihood that they will continue thereafter into 2018." To counteract the potential scarcity of eligible assets, Goldman Sachs expects the ECB to relax its self-imposed rules to permit an extension without creating or deepening tensions deriving from Bund scarcity. Goldman Sachs expects a move away from the capital key to play a leading role in addressing the technical constraints, economist Huw Pill says. He adds that allowing the national central banks that wish to curtail their purchases to return their quota to the ECB for redistribution to other more willing national central bank purchases is "one way forward." (emese.bartha@wsj.com ; @EmeseBartha)
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(END) Dow Jones Newswires
September 20, 2016 07:18 ET (11:18 GMT)