Reuters Poll: ECB to keep policy loose this year despite high inflation risks

As per Reuters’ latest poll on the European Central Bank’s (ECB) next moves, conducted over 39 economists, “ECB will not change the total size of its asset purchase programme at its June 10 meeting but will start tapering its pandemic purchases later this year.”

“Nearly 90% of economists, or 34 of 39, in response to an additional question in the May 28-June 2 Reuters poll said the ECB would leave the 1.85 trillion euros worth of asset buys under its Pandemic Emergency Purchase Programme (PEPP) unchanged at its June meeting,” details mentioned.

Around 20 economists from 35, said that sometime later this year the ECB would start tapering its asset purchases programme, including 13 who expected a start as early as next quarter.

The poll results are matching with market forecasts suggesting no action during the next week’s ECB. Hence, the EUR/USD pair shrugs off the update by the press time.

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