ECB QE will in the most likely scenario stop in September 2016: UniCredit

Quotes from UniCredit Research:

- After December's flat reading, we see eurozone industrial production rebounding in January. Factory activity will continue to benefit from falling oil prices and a depreciating EUR. The factory PMI only points to moderate IP growth in the first two months of 2015. 

- The output component of the survey has stabilized at an index level consistent with 1.5% annualized growth in industrial activity. Despite this sober outlook, it is worth noting that eurozone IP in January is set to record the fifth consecutive non-negative reading: the last time this happened was back in 2009. 

- The ECB is turning more optimistic, both on the growth/inflation outlook and on the functioning of the transmission mechanism of monetary policy. The upward revisions to GDP and CPI projections were larger than expected, envisaging a full return to price stability in 2017. The most likely scenario is that QE will stop in September 2016.