SocGen predicts ECB starting open-ended QE next month

According to a note by Societe Generale economist Anatoli Annenkov, the European Central Bank is likely to launch an “open-ended” quantitative easing program of asset purchases next month as part of its package to stimulate a sagging economy and nudge up inflation.

Sees monthly asset purchases worth EUR 40B ($44B), deposit rate cut of 20 basis points, and a “generous” tiering system to discourage banks from passing negative rates to retail clients.

Expects ECB’s QE to continue through at least March 2021 as the French bank forecasts a U.S. recession next year.

Euro slips 0.1% against the U.S. dollar to 0.9 per greenback.

https://seekingalpha.com/news/3495322-socgen-predicts-ecb-starting-open-ended-qe-next-month