Covid Cases Surge, ECB Asset Purchases Will Follow

The European Central Bank Governing Council will probably announce in December an expansion of its pandemic emergency purchase program that is not only commensurate to the weakening of the economic outlook, but also allows room for manoeuvre if the situation were to deteriorate further. Thats according to Bloomberg Economics, which forecasts an increase to 1.8 trillion euros ($2.1 trillion), bringing overall bond purchases to more than 5 trillion euros by the end of 2023. As virus infections keep rising across the euro area, the chance is that the ECB sees no reason to wait and announces the larger figure this week.