Economics
New Europe Lockdowns Raise Prospect of ECB Stimulus Surprise
- Chance of preemptive policy action this week has increased
- Markets still expect officials will opt to wait for December
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New coronavirus lockdowns by the euro zone’s biggest economies are boosting the chance of preemptive monetary stimulus by the European Central Bank this week.
Germany and France are following Italy and Spain with restrictions echoing those that triggered an unprecedented slump earlier this year. While most economists and investors still think the ECB will wait until December to expand its bond-buying program, the dramatic shift in risks has put them increasingly on guard for surprise action on Thursday.