Economics
Draghi Seen Expanding QE by Economists Fearing Shallow Recovery
- Economists in Bloomberg survey predict QE expansion by June
- TLTRO estimated at 70 billion euros in next week's offering
The fifth round of the ECB’s targeted long-term loans to banks -- aimed at rekindling lending to companies and households -- will take place next week.
Photographer: Balint Porneczi/BloombergThis article is for subscribers only.
Mario Draghi’s promise that the European Central Bank is willing to step up its stimulus if needed is resonating with economists, who see the euro-area recovery as too shallow to be sustained.
More than two-thirds of respondents in a Bloomberg survey predict the ECB’s president will expand or extend the 1.14 trillion-euro ($1.3 trillion) quantitative-easing program, and almost all of those say he’ll do so within nine months. While an increasing number of respondents see the economy improving for now, they’re also fretting that the upturn won’t last long.