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Deutsche Bank Research Eurozone I Economic.; Data Flash ECB: Private QE in September We are bringing forward the timing of private QE (ABS purchasing) to 4 September. Recent weak data and Draghi's latest comments on inflation expectations we think are enough to believe the ECB will supplement the TLTRO in the next few months. Our baseline is to expect this as soon as the next ECB meeting on 4 September, but this is a very close call. An announcement could wait, although the markets will be unhappy to be told that inflation expectations are potentially dis-anchoring if the ECB has no new policies to announce. What we expect is not generic QE with government bond purchases, as other central banks have done. We believe the ECB will engage in private GE, that is, ABS purchasing as a complement to the TLTRO. If private GE does not emerge in September, we think it will follow shortly thereafter. Our baseline had been to expect the ECB to initiate private OE in early 2015. Our view is that the ECB won't want to take any chance with the capacity of the TLTRO to alone end this protracted period of low inflation. We thought the preliminary staff estimates for 2017 HICP inflation, to be published in December, could be the trigger for private CIE or to at least give rise to a more vocal debate on QE. Mario Draghi's speech in Jackson Hole was significant, in our view. It opens the door to earlier action by the ECB. It is a close call, but we now think the ECB will announce private DE (ABS purchasing) on 4 September. There are several reasons for the faster move to private QE. HEST. recent leaf economy data have been disappointing, e.g. Q2 GDP and August PMI. There are several distortions which might have weighed on GDP in 02, overpowering the underlying momentum of the recovery. This includes weather and holiday effects. The geopolitical uncertainties of the Russia/Ukraine situation might have also have dragged. The geopolitical effects are ling

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