Economists expect Mario Draghi to announce a 550 billion euro (US$640 billion) bond purchase program this week, Bloomberg reported Tuesday.
The European Central Bank president will make his biggest effort yet to fight deflation in the eurozone by announcing quantitative easing (QE) on Thursday, 93 percent of respondents in a Bloomberg survey said.
At a news conference after the ECB’s governing council meets, Draghi will need to convince investors he has an effective strategy to reinvigorate Europe’s economy.
Speculation about his plans has already sent the euro to an 11-year low against the US dollar.
Fund flows in search of a safe haven probably contributed to the Swiss National Bank’s shock decision to end a cap on the franc against the euro.
“Market expectations now are stellar,” the report quoted Attilio Bertini, head of research at Credito Valtellinese SC in Sondrio, Italy, as saying.
There must be “no disappointment”, and “the ECB’s next move should be pervasive, risk-transferring and long-lasting”, he said.
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