ECB Seen Favoring Bond Buying Over Loans as Crisis Deepens
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The European Central Bank will restart its controversial government bond purchases rather than offer banks another round of unlimited three-year loans as the sovereign debt crisis worsens, a survey of economists shows.
Of 22 economists polled this week, 17 predicted the ECB will be forced to resume the Securities Markets Program, while only one forecast it will offer another batch of three-year cash. Nine said the central bank may consider shorter maturity loans of one or two years.