Goldman Sachs Sees Large-Scale ECB Bond Buying of Limited Effect

The European Central Bank is unlikely to begin large-scale asset purchases to stimulate inflation and such a plan would have limited effect as nations’ borrowing costs are already low, according to Goldman Sachs Group Inc.

“We doubt that a large-scale asset-purchase program would have a meaningful impact on yields,” Goldman Sachs analysts, including London-based chief European economist Huw Pill, wrote in a client report. “With rates at such low levels, it is unclear how attractive euro-area government yields will look for investors.”