S&P says the ECB will extend its QE programme

FXStreet (Mumbai) - The rating agency Standard & Poor's said today that the European Central Bank (ECB) could extend its QE programme beyond September 2016.

The rating agency believes the ECB will be unable to attain its inflation target since the EUR has strengthened against the EM currencies. Hence, the S&P says the ECB could extend its QE program and may actually reach EUR 2.4 trillion.

"As emerging market currencies have declined, the euro has begun to appreciate again, complicating the European Central Bank's quantitative easing (QE) program, meant to jumpstart Eurozone growth and lift inflation expectations.”