Economics

ECB Seen Stepping Up Pace of Bond-Buying to Rein In Yields

Most surveyed economists expect ECB to raise weekly purchases
More than half see possibility of emergency tool’s extension

Watch: German Bundesbank President Jens Weidmann says the recent rise in euro-area bond yields isn’t yet particularly worrying,(Source: Bloomberg)

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By Carolynn Look and Harumi Ichikura

March 5, 2021 at 5:00 AM UTC

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The European Central Bank will step up its pace of emergency asset purchases to counter rising bond yields that risk hurting growth prospects in the euro area, according to economists.

That’s the majority view in a Bloomberg survey, which also showed that more than half the respondents expect the 1.85 trillion-euro ($2.23 trillion) program to be extended beyond its current end-date of March 2022. At the same time, just one fifth expect another increase in the size of the tool, suggesting market moves so far haven’t fundamentally changed the economic outlook.