The European Central Bank at the next monetary policy meeting on 4 June is expected to increase its pandemic emergency bond-buying programme by €400bn- €500bn, after having spent around €250bn of the €750 bn total up to end-May. That is the forecast of Didier Borowski, head of global views at French asset manager Amundi, in a podcast with OMFIF on the options facing the ECB after the ruling on bond purchases by the German constitutional court on 5 May. ‘If you look ahead, and seeing the debate in Germany, [the ECB] may lose some flexibility in its purchase programme,’ Borowski said. ‘In the short run, we would expect the ECB in its government bond purchases to continue to deviate quite substantially from the capital key.
Read the transcript below:
ECB ‘heading for bond buying increase’
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Germany needs ‘open discussion’ on euro membership
ECB ‘may double’ pandemic bond buying