Extra QE: Much needed stimulus for Europe

In an effort to further weaken the euro, boost economic activity, and create inflationary pressures, the European Central Bank's foot on the easy money gas pedal will be maintained, writes BMO Asset Management's Sam Cosh.

The €1.1tn programme that came into effect in March and is scheduled to end in September 2016 could even be extended in terms of both duration and increased monthly asset purchases. That would give the euro area and pan-European economies the added stimulus needed to maintain and accelerate economic activity. Another factor is the Purchasers Managers' index. The latest reading of manufacturing activity in the eurozone has highlighted a number of encouraging news on the new orders, new business and employment fronts, all pointing to sustained economic growth recovery, albeit slow. The ...