ECB Faces Bond-Buying Shuffle With QE Extension on the Cards
- Extending bond-purchase plan won’t be easy unless rules change
- Issue share, deposit-rate floor, new asset classes all options
We Expect no Change in ECB Policy, Says Investec's Shaw
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The European Central Bank might need to change the rules of the game if it wants to keep playing in the bond market.
President Mario Draghi’s 1.7 trillion-euro ($1.9 trillion) asset-purchase program is scheduled to end in just six months, but euro-area inflation is still weak and the full shock of the U.K.’s Brexit vote could be yet to come. If the ECB extends quantitative easing -- as most economists surveyed by Bloomberg predict -- policy makers may have to reconsider what they can buy.