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ECB made right policy move on Dec 8, says majority of traders
December 12, 2016 / 12:16 PM / a year ago

ECB made right policy move on Dec 8, says majority of traders

(Reuters) - The European Central Bank was right last week to extend its quantitative easing programme by nine months but scale back its monthly asset purchases from March, according to a majority of euro money market traders polled by Reuters.

The European Central Bank (ECB) headquarters are pictured in Frankfurt, Germany, September 3, 2015. REUTERS/Ralph Orlowski/Files

ECB President Mario Draghi announced on Dec. 8 that the current asset purchases programme, which was to expire in March 2017, would continue until the end of next year, but from April the monthly spend would be 60 billion euros (50.32 billion pound). It is currently 80 billion euros.

Thirteen of 16 traders, who answered an extra question, said that was the right thing to do.

A separate Reuters poll ahead of the Thursday meeting predicted the ECB would extend its QE for another six months. But only 14 of 54 economists had correctly foreseen a scale back in the monthly spend after March 2017. [ECB/INT]

Monday’s poll of 22 traders showed the ECB would allot 35 billion euros ($37.1 billion) at its weekly refinancing operation, a tad less than the 35.76 billion euros maturing from last week.

Reporting by Purnita Deb; Polling by Shrutee Sarkar; Editing by Andrew Heavens

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