ECB’s balance sheet to shrink to €6.0trn by end-2025, BofA forecasts
NeutralFinancial Markets
Bank of America has projected that the European Central Bank's balance sheet will decrease to €6.0 trillion by the end of 2025. This forecast is significant as it reflects the ECB's ongoing efforts to normalize monetary policy after years of quantitative easing. A shrinking balance sheet could indicate a shift towards tighter financial conditions in the Eurozone, which may impact inflation and economic growth.
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