The European Central Bank’s
(ECB) three-year old asset buying programme could come to an
end this September over concerns surrounding housing and equity
bubbles. Some market participants argue it could easily use
alternative tools to manage price levels in the EU.
The quantitative easing programme,
launched in early 2015 after a drawn-out battle within the ECB
and criticism from Germany, aims to reduce deflationary
pressure and boost growth. But inflation remains well below the
official two percent target, in spite of the eurozone growing
by 2.5% in 2017.
The ECB scaled back the programme
at the start of January, and will now purchase €30 billion
(approximately $37.2 billion) a month as opposed to €60
billion. But concerns about overinflated prices in some markets
have caused some market participants to call for the ECB to
France’s central bank governor Francois
Villeroy de Galhau said last week that...