Quilvest Gestion foresees ECB extending QE for six months
In its latest strategy review, Quilvest Gestion has assessed that the European Central Bank will surely extend the 19-month initial duration of its quantitative easing policy.
Through its QE program, the ECB has been buying €60bn of Eurozone sovereign bonds every month since March 2015.
According to Rémi Lelu de Brach, fixed income portfolio manager at Quilvest Gestion, the ECB’s QE should last through March 2017, six months more than intially expected.
He also suggested that the ECB’s monthly purchase amount might exceed €60bn. It will not rise before March 2016, Quilvest Gestion’s fixed income portfolio manager said.
Lelu added the remuneration rate of governments’ deposits would then probably drop but believed such a thing will not happen as the inflation should increase in the eurozone over the coming months.
Quilvest group has over $18bn (€16.3bn) of assets under management.