ECB needs to clarify how it expects to exit QE
The question is whether it is relying on the flow of purchases or the stock of securities to deliver its punch
Frankfurt
AS the European Central Bank (ECB) moves closer to picking a route out of quantitative easing (QE), it might have to clarify its philosophy on how the programme works.
The ECB's commitment to buy 80 billion euros (S$121.7 billion) a month of debt until March 2017 will add 1.7 trillion euros to its balance sheet compared with the start of the plan two years previously. Yet, the central bank has also pledged to keep going if needed to revive inflation, raising the question of whether it's relying on the flow of purchases or the stock of securities to deliver its punch.
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