Increased likelihood of ECB extending QE program

At least ECB member Peter Praet does not mice his words. In his view there are risks as regards the inflation target due to developments in the global economy and on the commodity markets. According to Praet, the ECB is prepared to extend the QE programme or to increase its volume. 

Next week Mario Draghi, who by the way is not going to the wilderness of Wyoming, will announce new projections for growth and inflation at the ECB meeting. At that stage the market will receive more information on the future of QE. 

"There is an increased likelihood that QE will be extended beyond September 2016 the longer the turbulence on the financial markets persist thus leading to increased concerns about the long term impacts on the real economy", says Commerzbank.