A growing number of experts are inclined to believe that the launch of a large-scale QE in the euro area is bound to happen. Analysts from the US cut their GDP growth forecasts for the eurozone in 2014-2015. Given these circumstances, economists at the Bank of America say that the launch of quantitative easing by the ECB in the next year now seems “inevitable.” A month ago this scenario was told to be “probable”; now the degree of possibility is higher.
According to the ECB’s survey, the region’s GDP is expected to grow 0.7% in 2014 and 1.1% in 2015, down from previous estimates of 0.8% and 1.3% respectively.
Germany’s growth outlook was also slashed to 1.4% from 1.5% in 2014 and 1.3% from 1.8% in 2015.
Meanwhile, Italy’s GDP is projected to increase 0.1% next year and Spain’s economy is seen to expand by 1.5%. Previous forecast suggested a 0.3% rise and 1.7% expansion respectively.
According to Mario Draghi, the bank will repurchase mortgages since the middle of October, and asset-backed securities (ABS) since the beginning of Q4.
Previously Vice President Vítor Constancio said that the possible amount of repurchase program of asset-backed securities amounted to 1 trillion euros ($ 1,260 billion).