Juergen Stark is set to announce his retirement as chief economist of the European Central Bank (ECB), according to several market reports.
Stark was due to remain at the ECB until May 2014. He is seen as an advocate of higher interest rates and was opposed to the ECB/NCBs bond buying program. During a Sept. 4 call, Stark expressed his strong opposition to the program, which was expanded last month when the ECB started buying Italian and Spanish bonds, according to a Bloomberg report.
"If true, the markets may read this that the ECB is set to buy more in size and potentially think more seriously about QE particularly with Mario Draghi set to take the helm in November," explained Jefferies International analysts.
ECB President Juan Claude Trichet's term will end this year.