- Ken Wattret, chief euro-area economist at BNP Paribas
The European Central Bank is expected to restart government bond purchases rather than proceed with another round of long term refinancing operation.
"Market stresses will eventually force the ECB to restart the bond program, but it's not imminent," said Ken Wattret, chief euro-area economist at BNP Paribas in London. "Trying to get consensus on the council for it will be difficult."
"There is mounting evidence that the LTRO is pretty toxic for banks and isn't working," said James Nixon, chief European economist at Societe Generale in London and a former ECB official. "I don't think there will be another one."
European shares plummeted on Friday. The Stoxx Europe 600 Index erased 1.54 per cent to 253.40. Germany's DAX Index fell 2.36 per cent and France's CAC 40 Index tumbled 2.47 per cent. The U.K.'s FTSE 100 Index retreated 1.03 per cent to 5,651.79.
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