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ECB set to scale up stimulus as new data could indicate a need to do more
The European Central Bank (ECB) is expected to increase its coronavirus crisis asset-purchase program at this week’s meeting, amid fears of falling inflation and the steepest economic contraction since World War II for the euro zone. In March, the ECB unveiled its Pandemic Emergency Purchase Programme (PEPP), which will see it buy 750 billion euros ($819 billion) in euro zone government bonds this year. Analysts are now expecting it to increase that number. “We see a 60% probability that the ECB will raise its asset purchase target on Thursday, probably by 500 billion euros,” Florian Hense, from Berenberg ... (full story)