Nomura: ECB will make two moves in September

Nomura on the outlook for the ECB

Economists at Nomura now expect the ECB to lower the deposit rate by 10 basis points to -0.50% in September.

They also predict the ECB will extend the QE timeline to March September 2017. That would add another 480 billion euros to the ECB pile.

Nomura also touched on the problem of QE scarcity, noting that Draghi didn't address the subject. He said small tweaks would be a short-term help but the problem of a lack of assets to buy.

"Any adjustment to existing operational constraints could provide short-term relief though wouldn't solve the fundamental problem of German asset scarcity if low yields persist," Nomura wrote.