ECB has every reason to tighten as euro zone picks up steam
The latest economic surveys support rolling back easy monetary policy
HIS Markits’ euro zone Flash Composite Purchasing Managers’ Index has hit an almost six-year high this month, reports Reuters Friday.
“This is a really solid rate of expansion. It’s an economy firing on all cylinders,” said chief economist at HIS Markit Chris Williamson.
The survey comes as pressure has been building for the European Central Bank (ECB) to finally roll back its easy monetary policy of negative interest rates, and massive bond-buying moves.
Despite the momentum behind a more significant policy shift, the ECB said this month it will extend the bond-buying program to the end of the year, though they said they are willing to reduce the monthly spend starting next month.