ECB’s Balance Sheet Hits €4trn, Next Stop €5trn?

The European Central Bank will be celebrating an important landmark next month. In little more than a year, the central bank has been able to increase access liquidity in the European banking system from about €150 billion (March 2015) to €983 billion today. The primary driver of this liquidity growth has been the central bank’s QE policy, which should take excess liquidity above the €1 trillion marker next month. The current size of the ECB’s balance sheet and sheer volume of liquidity the bank has created over the past 12 months is the subject of a fixed income research report…