Why The ECB Will Keeping Buying Bonds For As Long As It Takes

BAML does not think buying bonds by the ECB will not stop anytime soon

The European Central Bank holds its next monetary policy meeting on Thursday and investors are on the look out for any signal from the bank on its plans to scale back its €60 billion  bonds buying stimulus program.

Speculation that the central bank will scale back its bond buying has pushed the Euro to a multi-year high against the dollar in the past few months with the currency hitting $1.20 at the end of August, its highest level since the beginning of 2015. Analysts at UBS have recently upgraded European banks on the expectation that they will benefit from higher rates as the central bank retreats from the...