September 28, 2015 / 1:42 PM / 4 years ago

ECB to increase QE in the next six months say traders: Reuters poll

(Reuters) - The European Central Bank will increase its monthly asset purchases program in the next six months, according to a slim majority of euro money market traders polled by Reuters on Monday.

The European Central Bank (ECB) headquarters are pictured in Frankfurt, Germany, September 3, 2015. REUTERS/Ralph Orlowski

A pullback in emerging markets after recent financial market turbulence and a slowdown in China, one of the euro zone’s most important trading partners, have increased risks to Europe’s inflation and growth outlook.

But ECB President Mario Draghi told European lawmakers last week the bank would need more time before deciding whether to ease policy further.

Eleven of 21 traders said the ECB would increase its 60 billion euros ($67 billion) of monthly bond purchases in the next six months and one said it would do so within a year. The remaining nine traders did not expect the amount to change.

When asked how much the ECB would increase the purchases, most of a smaller sample of traders said 10 billion to 20 billion euros.

Predictions for how much banks would borrow at the ECB’s weekly tender centered on 71.5 billion euros and for the three-month operation, 15 billion euros.

That compared to the 71.1 billion euros and 17.3 billion euros maturing this week from previous operations respectively.



Reporting and polling by Rahul Karunakar and Sarmista Sen; Editing by Ruth Pitchford

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