Institutional investors should be keeping a close watch on liquidity in the coming few quarters as the European Central Bank (ECB) looks to end its quantitative easing (QE) programme in September.

On 8 March, the ECB confirmed that its current monthly pace of €30 billion net asset purchases is intended to run until the end of September this year. It will only go beyond that date if it is not on course to see inflation hit its target of close to 2 percent. In a statement on its latest monetary policy, the ECB also removed any reference to being ready to resume any further QE if the economic outlook were to turn negative. The announcement followed its decision in October to cut its previous €60 billion monthly QE activity by a half.

PATRIZIA Immobilien has warned that central bank tapering across Europe will greatly influence overall real estate liquidity and, ultimately, pricing. In a report, it explains that the financial need of most European governments have not