ECB may promote bond purchases through September 2021

According to a Bloomberg News survey with the participation of many economists, the European Central Bank ( ECB ) will promote faster bond purchases throughout this summer to ensure the economic recovery. regional economy after the blockade orders to prevent the spread of the COVID-19 pandemic became more sustainable.

Most experts expect the ECB to continue buying about 20 billion euros ($24.4 billion) worth of bonds each week until September before slowing down. Based on the current plan, most experts predict the 1.850 billion euro pandemic economic support program will end in March 2022.

The ECB accelerated bond purchases in March to maintain favorable financial conditions for companies, households and governments in the euro area .

Inflation in the euro area has increased by 2% in the past month, which is technically well above the ECB’s target, although most economists and officials consider it a temporary phenomenon. Castle.

The Bloomberg economist expects policymakers to choose to buy significantly more bonds over the next three months under the pandemic emergency program (PEPP).

Europe’s COVID-19 vaccination campaign has surged after slow initial steps, allowing governments to gradually ease restrictions on restaurants, travel and more. Recent economic indicators signal that the region’s economy is starting to recover from the pandemic.

About three-quarters of economists surveyed expect new forecasts released at the next meeting to show higher economic growth this year.

Most experts also forecast that this year’s and next year’s inflation will be adjusted in an upward direction, but will move towards the 2% inflation target, as opposed to the current lower 2% target.


Source: Vietnam News Agency

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