Bloomberg survey of economists has the majority seeing the ECB raising QE
The latest Bloomberg survey has 68% of economists predicting an increase in ECB QE. When picking a timeline, 65% see an increase by December and 87% see them pumping more by March
More QE and when
Nearly all see the ECB running QE past September 2016
The main reason is that they see the current recovery fizzling out, as commented by a portfolio manager at Monte Paschi;
"While it's certainly true that the euro zone is indeed going through a phase of decent, maybe even above-potential, output growth, chances are that there is nothing self-sustaining in what we are seeing right now and the euro zone ends up again in a low-growth environment with inflation dangerously close to zero."
There's always a risk that this tepid recovery runs out of juice pretty fast but there are signs that this bounce looks more sustainable. The main signal is that domestic activity is picking up and that's a better foundation than the dead cat pick up over 2010/11
Inflation will always play a big part in the ECB's view on QE but if growth is rising while prices are still falling or remaining low, they'll probably be happy with the trade off and won't increase QE
