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Goldman Sees $470 Billion Boost to ECB Pandemic Bond Buying

  • Bank changes forecast to predict 400 billion euros of extra QE
  • Previous expectation was for pandemic program to end mid-2021
Updated on

Goldman Sachs Group Inc. foresees the European Central Bank boosting its pandemic bond-buying program by 400 billion euros ($470 billion) in December, after euro-zone inflation weakened further.

The ECB is also likely to extend the emergency asset-purchase operation, known as PEPP, by six months through the end of 2021, analysts at the U.S. bank wrote in a note to investors Monday. Reinvestments of maturing assets under the plan should continue to the end of 2023, they wrote, adding that the central bank may also target high-yield bonds for purchase.